Stocks & Shares
Stocks & Shares
Stocks and shares problems involve computing dividend income, yield percentage, and comparing investments. Dividend is always calculated on face value (typically ₹100), while yield is calculated on the market price at which the stock is purchased.
Key Idea
Dividend is on face value (usually ₹100). Yield is on market price. Invest in the stock with higher yield for the same dividend %, meaning lower market price gives higher yield.
Core Formulas
Annual income
Income = (Dividend% × Face Value) / 100
Dividend earned on stock investment
Yield/Return
Yield% = (Annual income / Market price) × 100
Return on investment at market price
Investment
Investment = Number of shares × Market price
Total cost to buy shares
Number of shares
Shares = Investment / Market price
Shares purchasable with given investment
With brokerage
Buy: cost = market price × (1 + brokerage%/100); Sell: price = market price × (1 − brokerage%/100)
Adjusting for broker commission
Relevant Exams
1–2 questions in banking and SSC exams. Tests: compute dividend income, find yield percentage, compare investments, or determine number of shares that can be bought.