# Stocks and Shares Problems, Shortcuts, Formulas

## Stocks

Stock is an investment in government or big companies at a fixed rate of interest

b) Value of bend (rs 100) is called stock and amount which is soled in the market is its actual value .

c) If the cash value of stock is rs 100 it is said to be par if its market value is less than 100 rs it is called below par and if market value is more than rs 100 it is called above par.

d) While purchasing , brokerage is added to be market value and while selling , it is subtracted from the market value .

e) Cash value of the stock = $\frac{given\; stock\times market value}{100}$

f) Rrequired stock = $\frac{cash\; paid\times 100}{market\; value}$

## Shares

a) A company's capital is divided in to equal proportion called share which by bought by person , called the shareholders .

b) Company's profit which is left after meeting out all type of expenses is called dividend which is equally distributed among the shareholders according to their shares

c) A company which is registered with the government is called limited company.

## Market value

The value of share mentioned in a share certificate is called it's nominal value , face value or par value . if a shareholders is needs his money then he cannot claim it back from the company . He can however, sell share certificate directly to any buyer through a broker and the value of the share quoted in the market is called the market value .

## Brokerage

The broker's charge is called brokerage.
a) When stock is purchased, brokerage is added to the cost price.

b) When stock is sold, brokerage is subtracted from the selling price.[/su_tab][su_tab title="Face Value"] The value of a share or stock printed on the share-certificate is called its Face Value or Nominal Value or Par Value.

NOTE :
1
The face value of the share always remain the same .
2. The market value of share is change from tome to time.
3. dividend is always paid on the face value of a share .

## Solved and Important Example on Brokerage

Question-1 what will be the market value rs 3000 stock at rs 95 at $6\frac{1}{4}$ % per annum.

Solution: The market value of Rs 100 stock = Rs 95

$\therefore$ The market value 3000 stock = Rs $\frac{95}{100}\times 3000$ = rs 2850

Question-2 A man sell his Rs 4000 stock at 5% at 5 premium . what sum will be get if the brokerage is $\frac{1}{8}$ ?

Solution: The s.p of Rs 100 stock rs 100+rs 5 -Rs $\frac{1}{8}$

$\therefore$ s.p of Rs 4000 stock = $\frac{839}{8}\times \frac{4000}{100}$ = Rs 4195

Question-3 how much stock of $3\frac{1}{2}$% can be bought fir rs 2140 at $106\frac{8}{9}$ if the brokerage is $\frac{1}{9}$ ?

Solution: sum paid Rs for 100 stock = rs. $106\frac{8}{9}+rs\frac{1}{9}$ = rs 107

$\therefore$ The stock bought for Rs 107 = rs 100

The stock bought for Rs 2140 = Rs $\frac{100}{107}\times 2140$ = Rs 2000

## Stocks and Shares Questions from Previous Year Exams

• Stocks and Shares Aptitude

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