Legal Definitions - denomination

The term denomination refers to a specific category, class, or group, often distinguished by a particular name or set of characteristics. While commonly associated with religious groups, it can also apply to other classifications, such as currency or financial instruments.

• Example 1 (Religious Context): When individuals discuss their religious beliefs, they might identify with a particular denomination. For instance, within Christianity, someone might state they belong to the "Methodist denomination" or the "Lutheran denomination."

  How it illustrates the term: Here, "denomination" signifies a distinct branch or organized group within a larger religion, characterized by its own specific doctrines, practices, and organizational structure.

• Example 2 (Currency Context): A cashier sorting money at the end of a shift will separate bills and coins by their denomination. They will place all $20 bills together, all $10 bills together, and all quarters together.

  How it illustrates the term: In this scenario, "denomination" refers to the specific face value or category of currency (e.g., a $5 bill is a different denomination than a $1 bill), allowing for easy classification and counting.

• Example 3 (Financial Instruments): When a company issues bonds to raise capital, these bonds are often sold in specific denominations, such as $1,000 or $5,000. An investor must purchase the bond in one of these fixed principal amounts.

  How it illustrates the term: Here, "denomination" refers to the standardized face value or principal amount in which a financial instrument, like a bond, is issued and traded, creating distinct categories for investment.