The minimum denomination is the smallest amount in which a bond can be issued or traded. It represents the minimum unit size in which the security is available for purchase or sale in the market. Investors looking to buy or sell the security must transact in multiples of the minimum denomination specified by the issuer.

The minimum denomination sets the threshold for participation in the investment, ensuring that investors meet the minimum requirements to buy or sell the security. For retail investors, the minimum denomination may influence their ability to invest in certain securities, while institutional investors may consider the minimum denomination when trading large volumes of the security.