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Definition of «notional»

The term notional refers to an amount or value that is considered in a financial transaction, but does not necessarily represent actual funds exchanged. It can be used as a reference point for determining the potential risk and return associated with a particular investment or agreement. In other words, it's like an imaginary or theoretical number that represents something real, but isn't actually real itself.

Usage examples

  1. The concept of time is notional, as it is a human construct used to measure the passage of events.
  2. In economics, notional value refers to the face value or nominal value of a financial instrument, such as a bond or derivative.
  3. The notional amount of a loan is the total amount borrowed, regardless of the interest or any other factors that may affect the repayment.
  4. The notional language barrier can be overcome by using interpreters or translation services in international business negotiations.
  5. When discussing probabilities, a notional value can represent an estimated or assumed value rather than an empirical or measured value.

Phrases with «notional»

Sentences with «notional»

  • Rudi Vis has the smallest notional majority of all in Finchley and Golders Green - just 31 votes separate him from the Conservatives. (politics.co.uk)
  • At the end of 1999, the company owned call options on 118 million shares and had sold put options on 69 million shares, and amount that equaled billions of dollars of notional value of Dell common stock — real cash that Dell would have to come up with if things went bad. (basehitinvesting.com)
  • Sedgefield - Conservative target 364; notional Labour majority of 18,198 over the Conservatives. (conservativehome.blogs.com)
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See also

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