Nimiarvo

Nimiarvo, meaning nominal value or face value, is a term used in Finnish finance to denote the fixed value stated on a financial instrument, such as a share or a bond. It is the value recorded in issuing documents and is used for accounting, regulatory purposes, and in some contracts. The nimiarvo is separate from the instrument’s market price, which may differ.

In the context of shares, nimiarvo per share is the value stated on each share and contributes to the company’s registered capital (osakepääoma). The total registered capital is the sum of the nominal values of issued shares. In many jurisdictions, including Finland, shares historically have a nominal value, though market practice may treat the par value as largely symbolic; some issuers may use very small values or issue no-par-value shares in other markets.

For bonds, the nimiarvo is the amount repaid at maturity and used to calculate coupon payments (for example, a 5% coupon on a 1,000 euro bond is 50 euros per year, calculated on the nominal value). While the market price can fluctuate, the redeemable amount at maturity remains at the nominal value, barring default.

The difference between nominal value and market value can reflect credit risk, interest rates, or supply and demand. The concept is widely used in accounting and financial reporting to standardize measurements and regulatory capital calculations.

See also: Nominal value, Face value, Par value, No-par value.