Shares and Dividends Class 10 ICSE Maths Notes Concept. In this article you would learn about Investment, Return, Annual Dividends and share on premium or on discount with examples. Visit official website CISCE for detail information about ICSE Board Class-10 Physics.
Shares and Dividends Class 10 ICSE Maths Notes Concept.
A huge amount of money is necessary to start a large corporation. An individual may not always be able to invest such a large sum. Then a group of people that are interested in the company join.
What is Shares
This huge amount of sum is broken into a small unit. Each of these parts of total money needed to run the company is referred to as a share,
Nominal Value (N.V.)
The value assigned to each share is referred to as its original or nominal value (N.V.) Face Value / printed Value Shareholders are those who buy shares in a company as investment.
Market Value
The price of share at any time is called Market value of Shares. The M.V. of shares change time to time depend on the performance of the company.
Above Par Below Par / at Par
There are three conditions
If MV = NV then share is called at Par
If M.V. > N.V then share is called at Premium or above Par
and If MV < N.V then shares is called at discount or below Par
Annual Dividends
Company announce profit percent in each financial year which calculated on Face Value of shares.
Annual Dividends = ( NV x Number of Shares x Dividend %) / 100
Investment = MV of one share x Number of shares
Number of shares = Investment / MV of one share
Rate of Return = Annual Dividend x 100 / Investment
More Profitable Investment
Comparing of Two or more Company shares find out rate of return by using following formulas
Return % x NV = Annual Dividend % x MV
–: End of Shares and Dividends Class 10 ICSE Maths Notes :–
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