# Stocks and Shares Questions

Q:

The cost price of a Rs.100 stock at 4 discount, when brokerage is $\inline \frac{1}{4}$% is :

 A) Rs.95.75 B) Rs.96 C) Rs.96.25 D) Rs.104.25

Explanation:

CP. =$\inline Rs.(100-4+\frac{1}{4})$ = Rs.96.25

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Q:

A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is:

 A) 12 B) 15 C) 18 D) 20

Explanation:

Dividend on Rs. 20 = Rs. (9/100)x 20 = Rs.9/5.

Rs. 12 is an income on Rs. 100.

Rs.9/5 is an income on Rs.[ (100/12) x (9/5)] = Rs. 15.

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Q:

A man invested Rs. 14,400 in Rs. 100 shares of a company at 20% premium. If his company declares 5% dividend at the end of the year, then how much does he get?

 A) Rs.500 B) Rs.600 C) Rs.650 D) Rs.720

Explanation:

Number of shares = $\inline \left ( \frac{14400}{120} \right )$=120.

Face value = Rs.(100 x 120) = Rs.12000.

Annual income = $\inline Rs.\left ( \frac{5}{100}\times 12000 \right )$ = Rs. 600

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Q:

A 6% stock yields 8% . The market value of the stock is :

 A) Rs.48 B) Rs.75 C) Rs.96 D) Rs.133.33

Explanation:

For an income of Rs. 8, investment = Rs. 100.

For an income of Rs 6, investment =Rs. $\inline&space;\left&space;(&space;\frac{100}{8}&space;\times&space;6\right&space;)$ = Rs. 75

Market value of Rs. 100 stock = Rs. 75.

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Q:

Find the cash realised by selling Rs. 2440, 9.5% stock at 4 discount (brokerage $\inline \frac{1}{4}$ %)

 A) 2000 B) 2298 C) 2290 D) 2289

Explanation:

By selling Rs. 100 stock , cash realised = $\inline Rs.[(100-4)-\frac{1}{4}]=Rs.\frac{383}{4}$

By selling Rs. 2400 stock, cash realised =$\inline Rs.(\frac{383}{4}\times \frac{1}{100}\times 2400)$ = Rs 2298.