Aptitude - Stocks and Shares - Discussion

Guys.

Current Market Value = Rs. 96.
Required Income = Rs. 650.

Face Value is not given. We always assume face value as Rs. 100 when it's not mentioned in the question. and dividend is always given on face value!. So you earn Rs. 10 (i.e 10% of Face Value which is 100) even if you purchase the shares at Rs. 96 (which is the current market value).

So if you earn Rs. 10 on each share, you need 65 shares to earn Rs 650. at current market price Rs. 96, you need to invest 96*65 which is Rs. 6240.

Hope this helps.

Current Market Value = Rs. 96.
Required Income = Rs. 650.

Face Value is not given. We always assume face value as Rs. 100 when it's not mentioned in the question. and the dividend is always given on face value!. So you earn Rs. 10 (i.e 10% of Face Value which is 100) even if you purchase the shares at Rs. 96 (which is the current market value).

So if you earn Rs. 10 on each share, you need 65 shares to earn Rs 650. at current market price Rs. 96, you need to invest 96*65 which are Rs. 6240.

Here,

Market Price=96 Rs.

Dividend=10% of face value(since, here face value is not given so we take it as 100 Rs).
= profit per share =(10/100)*100=10 Rs.

This means,
On buying a share at the market price of 96 Rs earning is 10 Rs.
Therefore,
In order to earn 1 Rs as a profit, we have to invest = (96/10) = 9.6 Rs.

So,
To earn 650 Rs.
We have to invest = 650 * 9.6 = 6240 Rs.
Therefore, the answer will be option B.

Income = rate of dividend * face value.
Thus, face value = 6500.

Investment, or market value would be 96% of face value.
The 'Rs' should not be there with 96 it should be just 96 meaning that market value is 96% of face value.

Income = rate of dividend * face value.

Thus, Rs 650 = 10% * face value.

Face value = 6500 Rs.

Market Value or Investment = 96% of face value = Rs 6240.

When stocks are out we have a base value.

Here base value = 100 as per BSE Sensex.

So 10% stock means profit is 10% of base value.

Profit from investment in 1 share (Rs 96) is Rs 10.

So investment of Rs 1 yields Rs 10/96 profit.

So Rs x investment yields Rs (10/96) *x profit, which is Rs 650.

So investment x = Rs 6240.

A man purchased shares worth rs 18900 when the market price was rs 94. 50. Out of those shares, he sold shares of face value rs 12600 when the market price was rs 104, and sold the remaining shares at rs 98. He had to pay 1.5% brokerage each time. What was his gain or loss on the whole?

Can anyone solve this?

But we have a formula.

Annual income obtained = Total amount of stock * % rate of stock.

According to this if we do it:

650 = Total amount of stock*(10/100).

By solving this we will get total amount of stock = 6500.

Then what it means. I am unable to understand this stocks topic clearly can any one help.

Here in this, face value of stock not mentioned, and in solving problem we must need face value because income asked in rupees not in percentage.

So they assumed face value as 100.

For example if you assume F.V = 200 answer will be different.

So data is not sufficient in the question.

Stock is :96
Income is.: 650
The percentage is: 10%
:10/100
:10rs
The makeing investment is:(96/10)*650
:9.6*650
:6240

Dividend rate -10%.
Market price - 96.
Expected income - 650.
Income from one share = 96*10% =9.6.
So, investment require for getting 650 return = (650/9.6)*96.
= 6500.

The answer is not 6240.
The rate of return is 10%.
Return=6240*10%=624 not 650.