Nominal amount

The Nominalbetrag, or nominal amount, refers to the face value or the stated value of a financial instrument, such as a bond or equity capital. It is the amount for which the instrument was issued and is indicated on the instrument itself. The nominal amount may differ from its current market value, as it often does not reflect the current market price. For example, in bonds, the nominal amount corresponds to the repayment amount at maturity, while the market price may vary during the term. The nominal amount is essential for determining interest, dividends, and repayments of financial instruments.