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Aptitude - Stocks and shares ------------------------------------In this section you will find aptitude questions and answers of various difficulty levels on Stocks and Shares with explanation for various interview, competitive examination and entrance test in an easy to understand way. You can also checkout Tips and Tricks, Videos related to the topic.Use Green Board or space provided for Rough work whenever you need.

Formulae : A)Stock-capital : The total amount of money needed to run a company is called the stock-capital. B)Shares or Stock: The whole capital is divided into small units, called shares or stock. For each investment, the company issues a share-certificate, showing the value of each share and the number of shares held by a person. The person who subscribes in shares or stock is called share-holder or stock-holder C)Dividend: The annual profit distributed among share-holders is called dividend. Dividend is paid annually as per share or as a percentage. D)Face Value: The value of a share or stock printed on the sharecertificate is called its Face Value or Nominal Value or Par Value. E)Market Value: The stocks of different companies are sold or bought in the open market through brokers at stock-exchanges. A share or stock is

said to be : a.At Premium or Above Par, if its market value is more than its face value. b.At Par, if its market value is same as face value. c.At Discount or Below Par, if its market value is less than its face value. Thus, if a Rs. 100 stock is quoted at premium of 16 , then market value of the stock is Rs. 116 i.e. =(100 +16) rs. Likewise , if a stock of rs 100 is quoted at a Discount of 10 Rs, Then market value of the stock is 90 Rs. i.e. = (100-90) Rs. F)Brokerage: The broker’s charge is called brokerage. a.When a stock is purchased, brokerage is added to the cost price. b.When a stock is sold , brokerage is deducted from selling price. Note: a)The face value of a stock always remains the same. b)The market value of a share varies from time to time. c)Dividend is always paid on the face value of a share. d)Number of shares held by a person = (Total Investment / Investment in Single Share) = (Total Income / Income from Single Share) = (Total Face Value/ Face value of a single share). So, by a Rs. 100, 12% stock at 120 , its meant that : a)Face value of stock = Rs 100 b)Market Value of Stock = Rs. 120 c)Annual dividend on 1 share = 12% of face value = 12% of 100 = 12 Rs. d)An investment of Rs 120 gives an annual income of Rs. 12 e)Rate of interest p.a. = Annual income from an investment of Rs 100 = { (12/120) x 100}% = 10%

Questions and Answers :

PadhleBeta.net - Aptitude - Stocks and shares 1) To produce an annual income of Rs. 1200 from a 12% stock at 90, the amount of stock needed is: 1) 10000

3) 15600

2) 12000

4) 10500

Solution : For an income of Rs. 12, stock needed = 100 For an income of Rs. 1200, stock needed = 100 * 1200/12 = 10000

PadhleBeta.net - Aptitude - Stocks and shares 2) Rs. 9800 are invested partly in 9% stock at 75 and 10% stock at 80 to have equal amount of incomes. The investment in 9% stock is: 1) 4500

3) 3400

2) 5000

4) 6500

Solution : Let the investment in 9% stock is x. investment in 10% stock = (9800 - x) 9/75 * x = 10/80(9800 - x) hence x = 5000

PadhleBeta.net - Aptitude - Stocks and shares 3) In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of:

1) 4500

3) 6240

2) 5060

4) 6500

Solution : To get Rs. 10, investment = Rs. 96 To get Rs. 650, investment = Rs.(96/10) x 650 = Rs. 6240. PadhleBeta.net - Aptitude - Stocks and shares 4) The income derived from a Rs. 100, 13% stock at Rs. 105, is

1) 13

3) 11

2) 8

4) 15

Solution : Income on Rs. 100 stock = Rs. 13. PadhleBeta.net - Aptitude - Stocks and shares 5) A 9% stock yields 8%. The market value of the stock is :

1) 112.50

3) 90

2) 110

4) 115.30

Solution : To get Rs. 8, investment = Rs. 100

To get Rs. 9, investment = Rs. 100/8 * 9 = Rs. 112.50. Market value of Rs. 100 stock = Rs. 112.50 PadhleBeta.net - Aptitude - Stocks and shares 6) A 6% stock yields 8%. The market value of the stock is:

1) 112

3) 60

2) 75

4) 63

Solution : For an income of Rs. 8, investment = Rs. 100 For an income of Rs. 6, investment = Rs. 100/8 * 6 = Rs. 75. Market value of Rs. 100 stock = Rs. 75. PadhleBeta.net - Aptitude - Stocks and shares 7) The cost price of a Rs. 100 stock at 4 discount, when brokerage is 1/4 % is:

1) 111.50

3) 96.25

2) 110.20

4) 45.55

Solution : C.P.= Rs. 100 - 4 1/4 = Rs. 96.25. PadhleBeta.net - Aptitude - Stocks and shares 8) By investing Rs. 1620 in 8% stock, Sachin earns Rs. 135. The stock is then quoted at :

1) 111.50

3) 96

2) 110

4) 45.55

Solution : To earn Rs. 135, investment = Rs. 1620. To earn Rs. 8, investment = Rs. (1620/135) * 8= Rs.96. Market value of Rs. 100 stock = Rs. 96. PadhleBeta.net - Aptitude - Stocks and shares 9) A man invests some money partly in 9% stock at 96 and partly in12%stock at 120. To obtain equal dividends from both, he must invest the money in the ratio 1) 4:9

3) 16 : 15

2) 12:13

4) 3:5

Solution : For an income of Re 1 in 9% stock at 96, investment = 96/9 = 32/3 For an income of Re 1 in 12% stock at 120, investment = 120/12 = 10 Ratio of investments = 32/3 : 10 = 32 : 30 = 16 : 15.

PadhleBeta.net - Aptitude - Stocks and shares 10) By investing Rs. 1620 in 8% stock, arpit earns Rs. 135. The stock is then By investing Rs. 1620 in 8% stock, arpit earns Rs. 135. The stock is then quoted at : x quoted at :

1) 96

3) 100

2) 122

4) 87

Solution : To earn Rs. 135, investment = Rs. 1620. To earn Rs. 8, investment = Rs. (1620/135) * 8= Rs.96. Market value of Rs. 100 stock = Rs. 96 . PadhleBeta.net - Aptitude - Stocks and shares 11) A man invests in a 16% stock at 128. The interest obtained by him is:

1) 6.5

3) 18.6

2) 12.5

4) 13

Solution : investing Rs. 128, income is = Rs. 16. investing Rs. 100, income is Rs. (16 *100/128) = 12.5 PadhleBeta.net - Aptitude - Stocks and shares 12) A company pays 12.5% dividend to its investors. If an investor buys Rs.50 shares and gets 25% on investment, at what price did the investor buy the shares? 1) 6.25

3) 75

2) 50

4) 25

Solution : Dividend on 1 share = (12.5 * 50)/100 = Rs.6.25 Rs.25 is income on an investment of Rs.100 Rs.6.25 is income on an investment of Rs. (6.25 * 100)/25 = Rs.25

PadhleBeta.net - Aptitude - Stocks and shares 13) A boy invests some money partly in 9% stock at 96 and partly in 12% stock at 120. To obtain equal dividends from both, he must invest the money in the ratio

1) 16.15

3) 2:1

2) 3:4

4) 14:15

Solution : For an income of Re 1 in 9% stock at 96, investment = 96/9 = 32/3 For an income of Re 1 in 12% stock at 120, investment = 120/12 = 10 Ratio of investments = 32/3 : 10 = 32 : 30 = 16: 15. PadhleBeta.net - Aptitude - Stocks and shares 14) In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of

1) 5550

3) 6500

2) 9500

4) 6240

Solution : To get Rs. 10, investment = Rs. 96 To get Rs. 650, investment = Rs.(96/10) x 650 = Rs. 6240.