Question

Number of shares held by a person = ______.

Options

• `"Total Nominal Value"/"Face Value of 1 share"`

• `"Total Market Value"/"Face Value of 1 share"`

• `"Dividend"/"Market Value of 1 share"`

• `"Dividend"/"Investment" xx 100`

Answer 1

Number of shares held by a person = `underlinebb("Total Nominal Value"/"Face Value of 1 share")`.

Explanation:

(a) Total nominal (face) value = number of shares × face value, so number of shares = Total nominal value ÷ Face value of one share.

(b) If you use market value, you must divide Total Market Value by Market Value per share (not by face value).

(c) Dividend ÷ Market Value per share gives a dividend yield (rate of return), not the count of shares.

(d) (Dividend ÷ Investment) × 100 gives the return percentage (yield), not number of shares.