Ex. Suppose if the face value of the share is Rs.100 and market value is Rs.150. Let the rate of brokerage be 0.5%. What amount should one pay for purchasing 100 such shares ? What amount should one receive after selling 100 such shares ?
Situation (I) At the time of buying shares:
Buying price of 1 share = MV + Brokerage
= 150 + 0.5% of 150
= 150 + 0.75
If someone purchases 100 such shares the total cost is 100 ×150.75 =Rs. 15075.
Here Rs. 15000 is the share price and Rs. 75 is the brokerage paid.
Situation (II) At the time of selling shares.
Selling price per share = MV - Brokerage
= 150 - 5% of 150 = 150 - 0.75
If someone sells 100 such shares, he will get,
100 × 150 - Rs. 75 = Rs. 14925 after selling 100 such shares.
- Brokerage is always calculated on Market value of shares.
- In the contract note of sale-purchase of shares, price of one share is shown with brokerage and taxes.
Brokerage : We directly can't go to the stock market and buy or sell shares, only the registered members or organization (agency) of the stock market can buy or sell on our behalf. These members are called 'Share Brokers'. For catering the service of buying and selling of shares they charge some amount which is called ‘Brokerage’ Brokerage is paid on the Market value of the share.
Mr. Mahajan purchased 100 shares, each of face value Rs. 100, when the market price was Rs. 45 per share, paying 2% brokerage. If the rate of GST on the brokerage is 18%, find the total amount he spent.
Mr. D'souza purchased 200 shares of FV Rs 50 at a premium of Rs 100. He received 50% dividend on the shares. After receiving the dividend he sold 100 shares at a discount of Rs 10 and remaining shares were sold at a premium of ` 75. For each trade he paid the brokerage of Rs 20. Find whether Mr. D'souza gained or incurred a loss ? by how much ?
Smt. Desai sold shares of face value Rs 100 when the market value was Rs 50 and received Rs 4988.20. She paid brokerage 0.2% and GST on brokerage 18%, then how many shares did she sell ?
A share is sold for the market value of Rs 1000. Brokerage is paid at the rate of 0.1%. What is the amount received after the sale?
Fill in the blanks given in the contract note of sale-purchase of shares.
(B - buy S - sell)
|100 B||Rs 45|
|75 S||Rs 200|
Shri. Aditya Sanghavi invested Rs 50,118 in shares of FV Rs 100, when the market value is Rs 50. Rate of brokerage is 0.2% and Rate of GST on brokerage is 18%, then How many shares were purchased for Rs 50,118 ?