(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
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
Smt. Deshpande purchased shares of FV Rs 5 at a premium of Rs 20. How many shares will she get for Rs 20,000 ?
Sangeeta’s monthly income is Rs. 25,000. She spent 90% of her income and donated 3% for socially useful causes. How much money did she save ?
Complete the following table by writting suitable numbers and words.
|Sr.No||FV||Share is at||MV|
|(2)||...||premium Rs 500||Rs 575|
|(3)||Rs 10||...||Rs 5|
Mr.Amol purchased 50 shares of Face Value Rs100 when the Market value of the share was Rs 80. Company had given 20% dividend. Find the rate of return on investment.
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.|
Shri Shantilal has purchased 150 shares of FV Rs 100, for MV of Rs 120. Company has paid dividend at 7%. Find the rate of return on his investment.
Market value of a share is Rs 200. If the brokerage rate is 0.3% then find the purchase value of the share.