THE SHARE VALUE STATED ON A SHARE CERTIFICATE IS

• A. above par value
• B. below par value
• C. market value
• D. nominal value ✓

The answer to the question is: D. nominal value

The share value stated on a share certificate is typically the nominal value. The nominal value, also known as face value or par value, is the value stated on the share certificate and represents the minimum amount that must be paid by the shareholder when purchasing the shares. It is essentially the legal capital of the company and has no direct relation to the market value of the shares. The nominal value is important for accounting and legal purposes, as it determines the minimum capital that a company must maintain.

When a company issues shares, it assigns a nominal value to each share, which may be a small fraction of a currency unit (e.g., $0.01 or £0.01). This nominal value is fixed and does not change with fluctuations in the market. The market value of a share, on the other hand, is determined by supply and demand in the stock market and can fluctuate based on various factors such as company performance, economic conditions, and investor sentiment.