What is referred to as the nominal or face value assigned to a bond or stock?

The term that refers to the nominal or face value assigned to a bond or stock is known as par value. Par value is the original value of a bond or stock as stated on the certificate; it represents the amount that will be returned to the bondholder at maturity or the initial value of stock equity in the case of stock.

This value is important as it gives investors a baseline for the bond or stock's worth and plays a critical role in various financial calculations, such as the yield on a bond or the computation of dividends per share for stocks. While market value represents the current trading price, book value relates to the company’s assets minus liabilities, and nominal value is another term used but often interchangeably with par value. However, within specific financial contexts, par value is the designated and recognized term for the face value of bonds and stocks.