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Stocks and Shares

1. The document discusses stocks and shares, defining them as money borrowed by governments or companies from the public at a fixed interest rate. 2. It provides examples of calculations for purchasing and selling stock, finding the cost and proceeds. Interest rates, brokerage fees, and face values are factors. 3. Several word problems with multi-step calculations are presented, asking the reader to determine costs, investment amounts, income rates, and changes in income based on given stock purchase or sale scenarios.

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Sushobhan Sanyal
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45 views5 pages

Stocks and Shares

1. The document discusses stocks and shares, defining them as money borrowed by governments or companies from the public at a fixed interest rate. 2. It provides examples of calculations for purchasing and selling stock, finding the cost and proceeds. Interest rates, brokerage fees, and face values are factors. 3. Several word problems with multi-step calculations are presented, asking the reader to determine costs, investment amounts, income rates, and changes in income based on given stock purchase or sale scenarios.

Uploaded by

Sushobhan Sanyal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Takes you to places where you belong.

STOCKS AND SHARES


STOCK:
The money borrowed by government or any reputed company from public at a fixed rate of
interest is called stock.
Example : Indira Vikas Patra
isan Vikas Patra
The amount invested by a person initially is called !ace Value of the stock. "sually a period
is prescribed for the repayment of the loan. #hen stock is purchased$ brokerage is added to
the cost price.
#hen stock is sold$ brokerage is subtracted from the
selling price. The selling price of %s.&'' stock is said to be at par$ above par and below
Par according as the selling price of the stock is %s.&'' exactly$ more than %s.&'' or below
%s.&'' respectively.
(ote:
) %s.*''$ +, of stock at %s.-./ implies
Total holding of stock 0%s.*''
!ace value of stock 0 %s.&''
1arket value 0 %s.-2
Interest per annum 0 +,
Examples:
&.#hat amount is received to the purchase %s.&+''$ *
3
&
, stock at %s. &'.. 45rokerage 0
3
&
,6
7olution:
To purchase %s.&'' stock$ we need &'.8
3
3&&
. %s
3
&

Purchase of %s.&+'' stock
Takes you to places where you belong.
0%s
&+** . %s
&'' 3
&+'' 3&&

,
_

3. !ind the cash reali9ed by selling %s.3:''$ . ,


3
&
stock at . premium 45rokerage0 ,
:
&
6
7olution:
%s.&''8. 0 %s.&'. is the market value
;ash reali9ed for %s.&'' stock 0 &'.<
:
&
0
:
:&-
;ash %eceived on selling %s.3:'' 7tock 0
&'' :
3:'' :&-

0 %s.3.&:
=. !ind the better investment of .
3
&
, stock at %s.&'3 and : ,
:
=
stock at %s.-+
7olution
,
3
&
. at %s.&'3 gives an income of %s.
3
&&
.
&'3
&
&'' or ..=-, of investment.
: ,
:
=
at %s.-+ gives an income of %s.
:
&-

-+
&
&'', or :.-, of investment
The first is the better.
:. #hat should be the investment in + ,
=
3
stock at %s.&' premium to secure an annual
income of %s.+''>
7olution:
!or %s.&&' investment income is
=
3'
!or %s.+'' investment income is --'' . %s
3'
+'' = &&'


Takes you to places where you belong.
..? man sells %s..'''$ : ,
3
&
stock at %s.&:: and invests the proceeds partly in =, stock at
-' and the remains in :, stock at &'*.If his income increases by %s.3. $how much money
is invested in each stock>
7olution:
7elling price of the stock 0 23'' .'''
&''
&::

=, at -': :, at &'* 0 .: =
Investment in =, stock 0 23'' %s.:.''
*
.

Investment in :, stock 0 23''<:.'' 0 %s.32''
SHARE :
&.!ind the cost of -+ shares of %s.&' at %s.
:
=
discount and %s.
:
&
brokerage per share.
7olution :
;ost of & share 0 %s.
3
&-
:
&
:
=
&'
1
]
1

+
;ost of -+ shares 0 %s.-&3
3. !ind the rate of income derived from :' shares of %s.3. each at %s.. premium
45rokerage @ per share6$ the rate of dividend being .,.
7olution :
;ost of & share 0 %s.
:
&3&
:
&
. 3. + +
;ost of :' shares 0%s.&3&'0 Investment
!ace value of :' shares 0 :'3.0%s.&'''
Aividend on %s.&'' 0%s. .
Aividend on %s.&&'' 0 %s...
Income on investment of %s.&3&' is %s...
Takes you to places where you belong.
%ate of income 0 , . &''
&&''
..

=. #hat is the market value of a :, stock which yields + ,
=
&
after paying an income tax of
.,>
7olution:
Tax on %s.: at ., 0 '.3'
(et income 0 %s.=.*'
!or %s.
=
&
+ income$ investment is 0 %s.&''
!or =.*' income$ investment is *' . =
&-
=
&'' 0 %s.+'
:.? ;orporation declares a half yearly dividend of +,. B possess =.' shares whose face
value is %s.*'.Cow much dividend does he receive per year>
7olution:
!ace value of =.' shares 0 =.'*'03*'''
Aividend 0 ==+' . %s
&''
&3 3*'''

.. ? person invests %s..*-.'' in =, stock at %s.+3


3
&
and sells out when the price rises to
%s. ++
3
&
. Ce invests the amount in ., stock at %s.&'..#hat is the change in his income>
7olution:
%s.&'' share is purchased at %s.
3
&3.
.
!or %s..*-.''$ the worth of stock purchased0 .*-.''
&3.
3
&'' 0%s.-:=3''
Income for %s.&''0%s.
:
3+.
Income for %s.-:=3'' is 3=.* 3+.
:
3+.
&''
-:=3''

Takes you to places where you belong.
7tock purchase for %s.+3:*2' is 3=.* 3+.
&'+
&''
0%s..*-.''
Income on first stock 0
&''
-:=3'' =
0%s.3*3-+
Income on second stock 0
&''
.*-.'' .
0%s.3-:2.
;hange in income 0%s.3-:2.<3*3-+0%s.&&2-

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