STATED VALUE Meaning and
Definition
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Stated value is a term used in finance and accounting to refer to the nominal or face value of a security or asset. It represents the value assigned to a particular item by the issuer or company and is often used for accounting and legal purposes.
In the context of stocks or shares, the stated value represents the initial value at which the company offers its shares for sale to investors. This value is typically determined by the company's board of directors and is mentioned on the stock certificates. It is important to note that stated value is not necessarily the market value, which is driven by supply and demand in the open market.
For bonds or other debt instruments, stated value denotes the principal amount that will be repaid to the bondholders upon maturity. It indicates the amount of money the issuer owes to the bondholders and serves as the basis for calculating interest payments.
Stated value can also apply to other assets, such as preferred stocks, where it refers to the fixed value assigned to each share. Moreover, it can be used to indicate the book value of an asset on a company's balance sheet.
Overall, stated value represents the designated or determined value assigned to a particular financial instrument or asset, serving as a reference point for various financial calculations, contract agreements, and accounting purposes.
Common Misspellings for STATED VALUE
- atated value
- ztated value
- xtated value
- dtated value
- etated value
- wtated value
- srated value
- sfated value
- sgated value
- syated value
- s6ated value
- s5ated value
- stzted value
- ststed value
- stwted value
- stqted value
- stared value
- stafed value
- staged value
- stayed value
Etymology of STATED VALUE
The term "stated value" is composed of two words: "stated" and "value".
The word "stated" is the past participle of the verb "state", which comes from the Latin word "stare" meaning "to stand". In English, "state" means to express or declare something clearly and explicitly.
The word "value" comes from the Latin word "valere", meaning "to be strong, be worth". In English, "value" refers to the worth, importance, or significance of something.
When combined, "stated value" refers to the explicitly declared or expressed worth or importance of something. This term is commonly used in finance and accounting to refer to the nominal or face value of a financial instrument such as a stock, bond, or share of capital stock, as opposed to its market value.
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