NOMINAL VALUES Meaning and
Definition
-
Nominal values refer to numerical figures, amounts, or values that are considered as official or named in a particular context, but may not necessarily reflect the true or actual worth, significance, or substance of something. These values are typically assigned to objects, assets, financial instruments, or variables and are used for categorization, labelling, and identification purposes.
In accounting and finance, nominal values generally represent the face or par value of a security, such as stocks, bonds, or currencies, which is the initial value assigned at the time of issuance. These values are used for tracking and recording purposes, but do not necessarily indicate the current market value, which can change over time due to various economic factors.
Similarly, in statistics and data analysis, nominal values are used to classify or group variables into distinct categories or levels without implying any quantitative or relative order between them. For instance, in a survey, respondents may be categorized by their gender, with nominal values such as "male" or "female" assigned to each category.
It is important to note that nominal values do not possess inherent quantitative relationships or magnitudes. They are primarily used for organizational and descriptive purposes, providing a basic framework for communication, categorization, and comparisons, rather than conveying precise measurements or values.
Common Misspellings for NOMINAL VALUES
- nominal valuse
- bominal values
- mominal values
- jominal values
- hominal values
- niminal values
- nkminal values
- nlminal values
- npminal values
- n0minal values
- n9minal values
- noninal values
- nokinal values
- nojinal values
- nomunal values
- nomjnal values
- nomknal values
- nomonal values
- nom9nal values
- nom8nal values
Etymology of NOMINAL VALUES
The word "nominal" comes from the Latin word "nominālis", which is derived from the Latin word "nōmen", meaning "name" or "noun". It ultimately traces back to the Proto-Indo-European root "*nem-", which means "to assign" or "to allot".
The term "values" originates from the Latin word "valēre", meaning "to be strong" or "to have worth". It also goes back to the Proto-Indo-European root "*wal-", which denotes "to be strong" or "to rule".
When combined, "nominal values" refer to the assigned or named worth of something. It is commonly used to describe the face value or the assigned value of a currency, a figure that may not reflect the true or real value of that currency.
Infographic
Add the infographic to your website:
