Nominal capital definition
/What is Nominal Capital?
Nominal capital is the aggregate par value of those shares that have been issued by a corporation. Since par value is typically set at $0.01 per share, the total nominal value of a company is quite low. In cases where there is no par value at all, a firm has no nominal capital.
Example of Nominal Capital
A business sells 1,000,000 shares of its common stock to investors. These shares have a par value of $0.01 per share. Given this information, the nominal capital of the business is $10,000 (calculated as 1,000,000 shares x $0.01 par value per share).