Stocks & Shares
Stocks & Shares
Stocks and shares questions ask you to compute dividend income, compare yields, and decide which investment pays more. Remember that dividend always applies to face value (usually \u20b9100), not market price. Banking exams test this distinction directly, so locking the face-value vs. market-price split eliminates the most common trap.
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
Calculate the annual dividend earned by multiplying the dividend rate by face value.
Yield/Return
Yield% = (Annual income / Market price) × 100
Find the actual return percentage based on what you paid (market price), not face value.
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.