Question

Investment / Sale proceeds = ______.

Options

• Number of shares × M.V.

• Number of shares × N.V.

• Face Value × No. of shares × Rate of Dividend

• `"Dividend"/"Investment"`

Answer 1

Investment / Sale proceeds = Number of shares × M.V..

Explanation:

(a) Sale or investment proceeds are the amount realised by selling the shares, which equals the number of shares multiplied by the market (selling) price per share, e.g. selling price of one share = ₹ 160, so selling 80 shares gives 160 × 80 = ₹ 12,800.

(b) Number of shares × N.V. multiplies by nominal (face) value, not the actual market selling price, so it does not give sale proceeds.

(c) Face Value × No. of shares × Rate of Dividend gives total dividend (income), not sale proceeds.

(d) Dividend/Investment is a ratio (yield), not an expression for sale proceeds.