Notionality

Notionality refers to the state or quality of being based on a hypothetical or conceptual framework rather than on reality or concrete facts. It involves the creation of ideas, values, or entities that exist primarily in thought or as a matter of perception, often serving as a basis for analysis, assessment, or planning. It can manifest in various forms, from financial derivatives that derive their value from underlying assets to imagined scenarios used in strategic planning, or even conceptual frameworks in art and philosophy. The core element of notionality is its detachment from immediate, tangible existence, and its focus on theoretical or imagined possibilities.

Notionality meaning with examples

• The financial instrument's notionality was high; although no physical assets were exchanged, its value was tied to fluctuating interest rates, making it a bet on future financial behavior. This allowed for hedging against potential risks, but carried significant speculation and the risk of substantial losses.
• During the brainstorming session, the team explored different business plans, developing a range of sales targets based on notionality, testing different strategies, and assessing their projected impacts on revenue streams. This allowed a thorough analysis of the potential of each concept.
• The artist's concept of beauty was based on notionality, as the artwork represented an idealized form rather than any real person. Using symbolic representation, she challenged viewers to consider abstract concepts and how the world affects beauty.
• To plan for potential future challenges, the government developed emergency response strategies based on notionality. These hypotheticals, like natural disasters, helped create guidelines that provided the ability to act proactively.
• The philosopher used notionality to create an ethical framework, which outlined an idealistic perspective on what 'good' means. The conceptual models offered potential outcomes, even if they were unreachable in reality.