Stocks and Shares is an important topic in mathematics and quantitative aptitude. It is useful for school learning, SSC, banking, railway, state government exams, entrance tests and placement preparation. Many questions from this topic can be solved quickly when the basic rule and common patterns are clear.
This lesson explains stocks and shares in simple language. It includes meaning, important terms, formulas, shortcut tricks, solved examples, government exam style questions, common mistakes, practice questions, answers and FAQs. The purpose is to help students learn the topic step by step.
Before solving questions from stocks and shares, read the statement carefully. Write the given values, identify what is asked, and then choose the correct formula. This small process avoids confusion and improves speed.
What Is Stocks and Shares?
Stocks and shares questions are commercial mathematics problems based on investment, face value, market value, dividend, return and profit or loss.
Important Terms
| Point | Details |
|---|---|
| Share | Unit of ownership in a company |
| Face value | Printed value or nominal value |
| Market value | Price at which share is bought or sold |
| Dividend | Profit distributed by company |
| Yield | Return based on market price |
Important Formulas and Rules
| Point | Details |
|---|---|
| Dividend | Dividend percent x Face value / 100 |
| Income | Number of shares x Dividend per share |
| Investment | Number of shares x Market value |
| Yield percent | Income x 100 / Investment |
| Profit or loss | Selling value – Cost value |
Step-by-Step Method
- Identify face value and market value.
- Calculate dividend on face value.
- Calculate total income from number of shares.
- Calculate investment using market value.
- Find yield or profit as asked.
Shortcut Tricks
- Dividend is always on face value unless stated otherwise.
- Yield is calculated on market value.
- If market value is above face value, share is at premium.
- If market value is below face value, share is at discount.
- Brokerage increases buying cost and reduces selling receipt.
Common Question Types
| Point | Details |
|---|---|
| Dividend income | Find annual income |
| Yield | Return on investment |
| Market value | Find price |
| Brokerage | Add or subtract brokerage |
| Profit loss | Compare buying and selling values |
Solved Examples
Example 1
Face value Rs. 100, dividend 10 percent. Dividend per share?
10 percent of 100 = Rs. 10.
Example 2
Buy 50 shares at Rs. 120. Investment?
50 x 120 = Rs. 6000.
Example 3
Income Rs. 600 on investment Rs. 6000. Yield?
600 x 100 / 6000 = 10 percent.
Example 4
Share face value Rs. 10 gives 20 percent dividend. Dividend?
20 percent of 10 = Rs. 2.
Example 5
Buy at 100 and sell at 120. Profit?
Rs. 20 per share.
Government Exam Style Examples
Question 1
A man buys 100 shares of face value Rs. 10 at market value Rs. 12. Dividend is 20 percent. Find income.
Dividend per share = 20 percent of 10 = Rs. 2. Income = 100 x 2 = Rs. 200.
Dividend uses face value, not market value.
Question 2
Find yield if face value is Rs. 100, market value Rs. 125 and dividend 10 percent.
Income = Rs. 10. Yield = 10 x 100 / 125 = 8 percent.
Yield uses market value.
Question 3
A share bought at Rs. 80 is sold at Rs. 90. Find profit percent.
Profit = 10. Profit percent = 10 x 100 / 80 = 12.5 percent.
Profit percent uses cost price.
Common Mistakes
- Calculating dividend on market value.
- Calculating yield on face value.
- Ignoring brokerage.
- Confusing premium and discount.
- Using selling price as base for profit percent.
Practice Questions
- Dividend on FV 100 at 12 percent.
- Investment for 20 shares at 50.
- Yield if income 300, investment 3000.
- Profit on buy 80 sell 100.
- Profit percent on buy 80 sell 100.
- Dividend on FV 10 at 30 percent.
- Income from 100 shares dividend Rs. 5 each.
- Market value 120, face value 100, share is at?
- Market value 80, face value 100, share is at?
- Yield on dividend 8, market price 100.
Answers to Practice Questions
- Rs. 12
- Rs. 1000
- 10 percent
- Rs. 20
- 25 percent
- Rs. 3
- Rs. 500
- Premium
- Discount
- 8 percent
Frequently Asked Questions
What is face value?
Face value is nominal value of a share.
What is market value?
Market value is the price at which share is traded.
Dividend is calculated on which value?
Dividend is calculated on face value.
Yield is calculated on which value?
Yield is calculated on market value or investment.
What is share at premium?
A share is at premium when market value is more than face value.
Revision Notes
Dividend is based on face value, while yield is based on actual investment or market value.
For revision, learn the basic formula first, then solve one direct question and one word problem. After that, try mixed questions without seeing the answer. This builds real understanding.
Extra Practice Method
Do not memorise only final answers. Write the method in a notebook and repeat the same type of question with different numbers. Most exam questions are made by changing numbers, wording or conditions.
When options are given, estimate the answer after setting up the formula. Estimation helps remove wrong options quickly, but the final answer should still be checked carefully.
Conclusion
Stocks and shares questions become easy when face value and market value are not confused.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.
Additional Exam Notes
Stocks and Shares questions become easier when the condition is converted into a small table or equation. Read words such as total, difference, remaining, same, opposite, after, before, gain, loss, faster, slower, least and greatest carefully because they decide the method.
Students should practise direct formula questions first. After that, practise mixed questions where two or more ideas are combined. In competitive exams, the question is often simple but the wording is tricky.
Before writing the final answer, check whether the result is possible. A time value cannot be negative, a percentage should match the base value, and a final quantity should match the unit asked in the question. This habit catches many small mistakes.