Question

When shares are purchased without considering GST, the Buying Price is given by:

Options

• \[ \text{Buying Price} = \text{Market Value} - \text{Brokerage} \]

• \[ \text{Buying Price} = \text{Market Value} + \text{Brokerage} \]

• \[ \text{Buying Price} = \text{Market Value} \times \text{Brokerage} \]

• \[ \text{Buying Price} = \text{Face Value} + \text{Brokerage} \]

Answer 1

When shares are purchased, brokerage is added to the market value, so \[ \text{Buying Price} = \text{Market Value} + \text{Brokerage} \]