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Are there any circumstances under which an investor might be more concerned about the nominal return on an investment than the real return?
Wiki User
∙ 11y ago
circumstances:
a. when investors calculate the tax on returns, they use nominal returns,because tax on nominal returns is less than real returns in order to adjust profits.
Wiki User
∙ 11y ago
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What is the meaning of Nominal value of shares?
Nominal Value, Face Value or Par Value of Shares- Value of the Share as indicated on the Share Certificate. This is different from the Market Value of the Sare, which is the actual value of the share and the amount for which it can be bought or sold. The Market Value can be either higher or lower than the Nominal Value, depending on the performance of the company or the economic circumstances of the day. In essence, the Nominal Value of a Share is of little importance and most investors are concerned primarily, if not solely, with the Market Value of the Shares.
What is nominal interest?
Nominal InterestA nominal interest rate is the interest rate that does not compensate for inflation. This is used in relation to "effective interest rate" or "real interest rate."" Real Interest Rate = Nominal Interest Rate - Inflation Rate " Improvement suggested by Palash Bagchi.
What is the difference nominal cash flow and real cash flow?
Difference between real and nominal cash flow is that nominal cash flows uses the inflation information as well for calculation of nominal cash flow of future while real cash flow don't use that information for calculation.
What is tenor in bill of exchange?
Nominal account
What is the meaning of nominal tonnage?
When someone refers to a nominal ton, it is assumed that the ton is approximated and may not be an exact ton. An actual ton is 2000 pounds.
Is investment ac is nominal account?
Investment A/C is personal account
What is the meaning of Nominal value of shares?
Nominal Value, Face Value or Par Value of Shares- Value of the Share as indicated on the Share Certificate. This is different from the Market Value of the Sare, which is the actual value of the share and the amount for which it can be bought or sold. The Market Value can be either higher or lower than the Nominal Value, depending on the performance of the company or the economic circumstances of the day. In essence, the Nominal Value of a Share is of little importance and most investors are concerned primarily, if not solely, with the Market Value of the Shares.
How do you calculate nominal interest rate?
Nominal interest, is the amount of interest on a loan or investment that does not take into account inflation; it's the amount of interest listed on the loan or bond.
What is the nominal annual rate of return?
The nominal annual rate of return is calculated from the effective interest rate. It is typically a slightly lower percentage, and gives investors an idea of what their investment may return.
What is the nominal rate of return per year on an investment that doubles in value every 6 months?
400 percent APR
How do you calculate nominal output?
Add all total expenditure in an economy at current prices, this includes government spending, consumption, investment and net exports.
When you convert nominal rates that are compounded more than 1 time per year into annual rates you are finding the?
That's where you get the " APR " on a loan, or the " yield " on an investment.
Is politics nominal or ordinal?
Nominal.
is sex ordinal or nominal?
nominal
Is BMI a nominal or ratio data?
nominal
Is favourite sport ordinal or nominal?
Nominal
Is work settings nominal or ordinal?
They are nominal.
