Stocks & Shares Video Lecture - Banking Exams

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