Question

Which of the following is the correct formula for the number of shares purchased?

Options

• \[ \text{Number of Shares} = \text{Total Investment} \times \text{Market Value per Share} \]

• \[ \text{Number of Shares} = \frac{\text{Total Investment}}{\text{Market Value per Share}} \]

• \[ \text{Number of Shares} = \frac{\text{Total Investment}}{\text{Face Value per Share}} \]

• \[ \text{Number of Shares} = \frac{\text{Dividend per Share}}{\text{Total Investment}} \times 100 \]

Answer 1

Number of Shares = Total Investment ÷ Market Value per Share. Equivalently, Investment = Number of Shares × Market Value.