Nominal size is usually the high limit for the major diameter. In other words, for your threads, 0.4375 (7/16) is the largest you want the blank. There is an allowance for coming in under that size, and it varies with each size and class of fit under discussion. For a class 2A fit, the more common, the major should be no larger than 0.4361 and no smaller than 0.4258. For a class 3A it is actually a little larger, 0.4375/0.4281. I usually leave the major at the nominal, and do a little polishing that causes it to end up a little smaller, within class 2A limits.