Question

What does Market Value (MV) of a share signify?

Options

• The original price printed on the share certificate

• The brokerage charged by the share broker

• Current buying or selling price of a share

• The annual income earned from the share

Answer 1

Market Value (MV) is the current buying or selling price of a share. Brokerage is the broker's commission calculated on this market value: \[ \text{Brokerage} = \frac{\text{Rate of brokerage}}{100} \times \text{Market Value} \]