#### notes

(1) If MV > FV then the share is at premium.

(2) If MV = FV then the share is at par.

(3) If MV < FV then the share is at discount.

For example : (1) suppose FV = Rs. 10, MV = Rs. 15 and 15 - 10 =Rs. 5

∴ The share is at premium of Rs. 5, as MV > FV

(2) suppose FV = Rs. 10, MV = Rs.10 and 10 - 10 = 0

∴The share is at par. As MV = FV

(3) suppose FV = Rs. 10, MV = Rs. 7 and 10 - 7 = 3

∴The share is at discount. As MV < FV.

Sum Invested : Total amount required to purchase the shares is sum invested.

Sum invested = Number of shares × MV**Ex**. (1) If 50 shares of FV Rs. 100 each are purchased for MVRs. 120. Find the sum

invested.**Solution** : Sum invested = number of shares× MV

= 50 × 120 = Rs. 6000

**Ex.** (2) If you want to purchase 50 shares of MV Rs. 50 each. What is the total

amount to be paid ?**Solution** : Sum invested = Number of shares × MV = 50 × 50 =Rs. 2500

#### Related QuestionsVIEW ALL [16]

Joseph purchased following shares, Find his total investment.

Company A : 200 shares, | FV = Rs 2 | Premium = Rs 18 |

Company B : 45 shares, | MV = Rs 500 | |

Company C : 1 share, | MV = Rs 10,540. |