stocks and shares aptitude shortcuts
The following are the important basics of stocks and shares so please try to understand the basics first.
1.Stock Capital:
The total amount of money needed to run the company is called the stock capital.
2.Shares or Stock:
The whole capital is divided into small units, called shares or stock.
For each investment, the company issues a 'share-certificate', showing the value of each share and the number of shares held by a person.
The person who subscribes in shares or stock is called a share holder or stock holder.
3.Dividend:
The annual profit distributed among share holders is called dividend.
Dividend is paid annually as per share or as a percentage.
4.Face Value:
The value of a share or stock printed on the share-certificate is called its Face Value or Nominal Value or Par Value.
5. Market Value:
The stock of different companies are sold and bought in the open market through brokers at stock-exchanges. A share or stock is said to be:
- At premium or Above par, if its market value is more than its face value.
- At par, if its market value is the same as its face value.
- At discount or Below par, if its market value is less than its face value.
6.Brokerage:
The broker's charge is called brokerage.
-When stock is purchased, brokerage is added to the cost price.
- When stock is sold, brokerage is subtracted from the selling price.
- Dividend is always paid on the face value of a share.
and the above are the basics of stocks and shares and follow the shortcuts on stocks and shares
Formulae on Stock & Shares:-
1.No: of stock = Total Stock/100
Purchase Cost / (Mk.Vl + BR)
Sale Realisation / (Mk.Vl - BR)
Annual Income/Rate%
Formulae on Debentures:-
2.No: of Share = Investment (or) Purchase Cost/[MK.VL(1 + B%)]
Sale Realisation/[Mk.Vl(1 - B%)]
(Annual Income * 100)/(Divident% * Face value)