Merkintäarvo

Merkintäarvo, often translated as "nominal value" or "face value," refers to the stated value of a financial instrument, such as a bond or stock, as it appears on the certificate or in the contract. For bonds, the merkintäarvo is the amount the bondholder will receive upon maturity, assuming the issuer does not default. This is also the amount used to calculate periodic interest payments, known as coupon payments, which are typically a fixed percentage of the merkintäarvo. For example, a bond with a merkintäarvo of €1,000 and a coupon rate of 5% would pay €50 in interest annually.

In the context of stocks, merkintäarvo typically refers to the par value, which is a nominal amount assigned to each share when a company is incorporated. This value is often very low, such as €0.01 or €1, and has little to no relation to the actual market price of the stock. The par value of a stock is primarily an accounting concept, representing the minimum amount of capital that must be contributed for each share issued. It affects the company's balance sheet but does not directly influence the stock's trading price, which is determined by market forces like supply and demand, company performance, and economic conditions. Merkintäarvo is therefore a foundational figure for understanding financial contracts, but it is crucial to distinguish it from the instrument's market value or actual worth.