NOTIONAL Meaning and
Definition
-
Notional is an adjective that refers to something existing only in theory or as a concept, rather than in actuality. It describes an idea or concept that is imagined or hypothetical rather than tangible or concrete. When something is described as notional, it implies that it has no material or physical presence, and its existence is purely speculative or theoretical.
In the context of finance, the term notional is frequently used to describe the amount of an investment or transaction that is nominal or symbolic, rather than representing actual value. For example, in the case of a derivative contract, the notional value refers to the face value of the underlying asset, which may be significantly different from the actual investment or exposure involved.
In linguistic terms, notional is used to describe a grammatical category where words or phrases are grouped based on their concept or meaning, rather than structural or formal similarities. For instance, in some languages, words may be categorized as notional based on their role as nouns or verbs, rather than their form or inflection.
In general usage, notional can also refer to an idea or belief that is held without concrete evidence or substantiation. It conveys the notion that something is theoretical or imaginary rather than based on observable or proven facts.
-
Existing in idea only; imaginary.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for NOTIONAL
Etymology of NOTIONAL
The word "notional" originates from the Latin word "notionem", which means "concept" or "idea". It entered English in the late 14th century as "notioun" and was initially used to refer to a mental conception or understanding. Over time, it evolved into "notional" in the early 16th century, maintaining its basic meaning of something being theoretical or conceptual rather than concrete or tangible.
Similar spelling words for NOTIONAL
Infographic
Add the infographic to your website:
