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Nominal Share Values

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David H | 19:26 Sun 03rd Mar 2019 | Business & Finance
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Further to my previous question, my share certificate is 2.5p ordinary shares, which gave me the impression they had a low value. But of course the value of shares changes constantly, and when I checked it bore no relationship to it.

Does it refer to the original price on the initial sale or something else?

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The answer is something else, a nominal value of a share is ascertained by how much in share value the Company wanted to raise when floated. i.e. If a company starts up and wants to raise £100 they can raise this by many different values for example 100 shares of value £1 per share or 500 shares of 20p per share or 4000 shares of 2.5p per share. Hope this helps.
21:39 Sun 03rd Mar 2019
The answer is something else, a nominal value of a share is ascertained by how much in share value the Company wanted to raise when floated. i.e. If a company starts up and wants to raise £100 they can raise this by many different values for example 100 shares of value £1 per share or 500 shares of 20p per share or 4000 shares of 2.5p per share. Hope this helps.
Indeed, it is the par value or face value of the share at issue which is different to the market value as they are traded.

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