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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
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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'
+'' = &&'


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..? 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...
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%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''

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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-