A share is said to be at premium when its market value is ___ than its nominal value.

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True or False: The dividend is calculated based on the market value of the share.

False. The dividend is always calculated on the face value, not the market value.

Fill in the blank: The profit distributed to shareholders at the end of the financial year is called ___.

Dividend

If a shareholder receives a dividend of 5% on a share with a nominal value of 100, what is the dividend amount received?

Nominal Value (N.V.) of the share = ₹100

Dividend rate = 5%
Dividend amount

Riddle: I am the value that stays the same regardless of market fluctuations, what am I?

Nominal value (face value) of a share.

How do you calculate the total investment in shares?

Total investment is calculated by multiplying the number of shares by the market value of one share.

If the market value of a share is below its face value, it is said to be at a ___.

Discount

What is the formula to find the number of shares bought if the total dividend is known?

Number of shares bought = Total dividend / Dividend on 1 share.

What does F.V. stand for in finance?

F.V. stands for Face Value, which is also referred to as Nominal Value.

Multiple Choice: Which of the following best describes Nominal Value? A) The market price of a security B) The original value of a security C) The value after depreciation D) The value of a security after interest is applied

B) The original value of a security

If the market value of a share equals its nominal value, the share is said to be at ___.

Par