hello friends the questions on stocks and shares are usually not attempted in the competitive exams by the students considering those to be very very tough but believe me if you understand the basics very well you can attempt those questions in a very comfortable manner keeping this view in mind I her in the saying welcome to the session on stocks and shares I have been training the students in mathematics for the last 20 years now before we start with the questions let's have an overview of this session in this session we are going to discuss the basic definitions of the terms which will be used how to answer the questions without using the formulas we will only be applying unitary method or chain rule in order to answer the questions busca baskets typical questions and finally there will be some practice questions and their answer keys now let's start with the definitions the students first of all what do you mean by stock stock it is the value of the capital of the company the unit of which is usually rupees hundred unless specified otherwise so subsequently a year on Marikana heck is key face value hammer 100 money again Chuck Tackett question hundred face value couch ornate piccata and stock is always bought sold or head rupees 100 we call as a face value I told you this moving on cash we all understand the money required the investment the money you give to the person from whom you buy the shares or money you receive after selling the shares after that there is market price the rate at which the stock is sold you call that is the market price moving on students but this important terms is usually not understood by the student it is 4% at 85 this simply means that shear having a face value of rupees 100 as we told you to take the face value to be cookies hundred always unless a question states it otherwise it pays 4% dividend this 4% here means that if you invest 85 rupee you will be able to buy one share having the face value of rupees 100 and you will get four rupees income or dividend on that as company will always pay dividend on the face value which is rupees 100 in this case moving on students very importantly it is brokerage now brokerage you all can understand is the sum of money which VP to the broker is an agent from who we buy the shares or to whom we sell the shares it is just like the Commission we pay to a property dealer similarly there is a brokerage we pay to the broker who through which we can buy or sell the shares but mind it it is again paid on the face value this is something different from the practical world because vaster may you do brokerage Harry hamesha market price cupola Gaia theory but in questions it is charged on the face value it increases your purchase price and it reduces your selling price simply when you buy shares you pay brokerage along with that to the broker in a way it increases your purchase price and when you sell the shirts out of that you pay some money to the broker or it reduces your selling price and then important definitions are premium and discount if you buy a share for a price which is more than the par value or face value you call it you have paid a premium and if you buy it at a price less than that you call it you have bought it at a discount by students so simply let's start with the questions and solve those this one let us understand what yearly income can be derived by investing now 1o 9 to 5 is the investment in 13% stock a two-piece 95 so sue - what does that mean it simply means this 95 rupees is the market market price sorry 109 to 5 is given to be your investment and 13% is a return so partial you get how much per share you get 13 I told you to consider the face value to be hundred and specified otherwise now what do you want to calculate students you want to calculate yearly income now if you buy only one shear you will invest how much you willing mr. Spock a market price that is 95 and you will earn an income of 13 rupees so can you apply unitary method here students if your investment is 95 your income will be 2 is 13 so if your investment is 1 income will be 13 by 95 and if your investment is 1 0 9 2 5 so 5 this is 19 5 this is 2 this is 1 then it is it it is five now 1919 wanza 19 once a 19-5 115 into 13 it is 5 then 13 ones a 13 and 6 gives you 9 and it is fun so second option becomes your answer you can see we did nothing we only apply chain rule or unitary method just go home eek I get there and we got the answer for the same let's go to the next question this one do produce an annual income now here you have been given the income of rupees 600 for 1 by 2 percent stock this means one share will give you an income of how much 9 by 2 rupees and price is given to be market price is given to be 94 1 by 2 which becomes 118 9 by 2 rupees this becomes what students this becomes your market price all this is investment for one church against whereas the question is exactly of the reverse what we did earlier so other um 9 by 2 piece gain comes out there then we need to invest how much 189 by 2 for an income of one rupee so into 2 by 9 and for an income of rupees 600 this will become into 6 this is just application of general students to goes off 9 here gives you 21 for 21 into 600 is 1 2 6 0 0 so your first option becomes our answer right students let's go to the next question this one now here it says the capital of rupees 3 lakh has been divided in 3 thousand shares company pays a dividend of rupees 56,000 how much will delays yet for 36 years ok let's solve it let's solve this question students here the capital is divided into 3 thousand shares so that means for 3 thousand shares the dividend period is 56 thousand rupees for one share the dividend is 56 thousand divided by three thousand don't do the calculation let's take it in the end and now the niche has 36 ships so it will be 56 thousand by three thousand into 36 three zeroes born here three it is 12 solving this 12 6 the 72 12 5 the 68 is 672 rupees so this third option right students let's go to the next question this one now here students he invested rupees 3300 what 100 rupee shares a droopy is 109 not confuse yourself rupees 100 shares this means hundred is the face value he has given and 1 0 9 is the market price 15 percent dividend find his annual income now brokerage is 1 percent brokerage is charge on the face-value students 109 when you are purchasing it you're gross price will become 109 plus one that is 110 rupees so you are buying it for one one zero parents no company pays 15 percent dividend students now you invested 3300 how much you will get as the dividend so if you invested only rupees 110 you will get an income of rupees 15 students because you will have bought only one share so if your investment is 110 your income is 15 if investment is 1 it is 15 by 110 and if your investment is 3300 so your income will come out to be 13 to 15 that is 4 5 0 right students so first option of 450 will become here as such right students now on this question students you want to compare two investments one is four and half percent at 90 other is 4 percent equity it now so where is the best way to do this is try to calculate the investment to gain one rupee so investment for an income of rupee one now in the first case to rain soon it's a 4-1 by 2 percent stock that is 9 by 2 percent stock at rupees 90 so that means if you invest 90 rupees in the first case you earn an income of 9 by 2 so that means it comes out to be 20 rupees investment for one to be income price tunics now this 20 rupees is the investment for one rupee income in the first case now in the second case you invest 88 rupees to on for rupee is that means in order to one one rupee you are investing 22 rupees now again students if you are earning one rupee in both the cases your income happens to be same so which investment will be better wherever you invest lesser sum of money right so that means the first investment opportunity is a better one sunset is one moving on students this question now it's a 4% stock 95 is a market price now you want a net income of rupees 400 after paying an income tax of 5% no students what will be your income from one share from one share your income will be 4 rupees now out of that you will pay a tax of 5% no how much is 5% of 4 rupees its 10% is 40 Pesa so 5% is 20 Pesa if you subtract that your net income happens to be 3 rupees and 80 Pesa for which you have to buy only one share or your investment will be 95 rupees now we want the total investment in order to earn an income of 400 rupees so let's apply the chain rule for an income of 3.8 you need to have an investment of two peas 95 that's it now for an income of one rupee it will be 95 by three point eight and four and income of 400 so this e in to four now this we need to solve students so firstly you can remove the decimal it is 95 by 38 into 10 into 400 if you solve it 19 5 z this is tuza this is now five fives are twenty five into 400 it happens to be 10,000 so third option is your answer right students let's go to the next question this one a person invested the rupee is eighty one hundred and seven percent stock and in six percent no the catch is if his income from booth is the same so don't make an equation you want the same income can you say in order to on one rupee you need to invest 21 rupees in the first case and in order to on one rupee you need to invest 24 in the second case their income is one rupee or that means that is same so for the same income the investment is in the ratio of 7 is to 8 you have almost on the question students now your total investment is given to be 80 100 now in the 7 percent stock it will be 7 by 15 that is 7 plus 8 if you solve this this is 3 7 8 0 so your second option 3 7 8 0 Kista my students let's move on to the next question this one students this question seems typical it's very very simple it's a 3 percent stock so that means if you have one shear you will get an income of 3 rupees but for you it yields 4 percent that means get output chart percent correct on data that means your team to pay up to stock our dividend Mela hoga the 3 rupees which you got sorry the 3 rupees which you got here must be 4 percent of your investment now from that you can calculate investment comes out to be 25 into 3 that is 75 this means the market price of the share happens to be rupees 70 right students so I hope you all have learned the concept now here are a few practice questions for you the first one the second one third and these are the answers right students there is all from team booths I happy learning thank you
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