Stocks and Shares Aptitude

Stocks and Shares problems are a significant part of financial aptitude tests. These problems typically involve calculations related to the buying and selling of shares, understanding dividends, profits and losses in stock trading, and calculating share values. Mastery of these concepts is crucial for anyone looking to understand or engage in the stock market.

1. An investor buys 100 shares of face value $100 each at a premium of $20. What is the total investment?

Total investment = Number of shares × (Face value + Premium) per share
= 100 × ($100 + $20) = $12000.

2. If a company pays a dividend of 8% and a man receives $240 as a dividend, what is the nominal value of his shares?

Dividend = (Nominal value of shares × Dividend rate) / 100
$240 = (Nominal value × 8) / 100
Nominal value = $240 × 100 / 8 = $3000.

3. A person holds $4000 worth of shares paying 10% dividend. The dividend received is:

Dividend = (Total value of shares × Dividend rate) / 100
= $4000 × 10 / 100 = $400.

4. A man sells shares worth $8000 with a face value of $100 at a premium of 20%. The number of shares sold is:

Selling price per share = Face value + Premium = $100 + 20% of $100 = $120.
Number of shares = Total amount / Selling price per share = $8000 / $120 = 66.67 ≈ 67 shares.

5. If the market value of a share decreases from $60 to $50, the loss percent is:

Loss = Original value - New value = $60 - $50 = $10.
Loss percent = (Loss / Original value) × 100 = ($10 / $60) × 100 = 16.67%.

6. An investor buys 200 shares at a rate of $75 per share and receives a dividend of 8%. The dividend per share is:

Dividend per share = (Dividend rate × Face value) / 100
= 8% of $75 = $6.

7. A company declares a 5% dividend to the shareholders. If a person's annual dividend is $1500, the nominal value of his shares is:

Nominal value of shares = (Annual dividend × 100) / Dividend rate
= ($1500 × 100) / 5 = $30000.

8. A man invests a certain sum of money in 10% shares at 80. If his income is $1500, the investment made by the man is:

Income from $100 nominal = $10.
To get $1500, investment = ($1500 / $10) × $100 = $15000.

9. The market value of a 10% stock, in which an income of $1000 is derived by investing $8000, is:

Income from $100 nominal = $10.
Market value of stock = (Investment / Income) × $100
= ($8000 / $1000) × $100 = $800.

10. A person buys 150 shares at a face value of $50 each at a premium of 10%. The amount invested by the person is:

Amount invested = Number of shares × (Face value + Premium) per share
= 150 × ($50 + 10% of $50) = $7500.

11. If the price of a $100 stock is $80, what is the dividend yield?

Dividend yield = (Dividend per share / Market price per share) × 100
= ($10 / $80) × 100 = 12.5%.

12. A 12% stock yielding 10% is quoted at:

Let the market value be $x. Then, 12% of x = 10% of $100.
(12/100) × x = (10/100) × $100.
x = ($10 / 0.12) = $83.33 ≈ $83.

13. A person owns $5000 worth of 10% stock. If the stock is at 20% premium, the face value of the stock is:

Market value = Face value + Premium.
$5000 = Face value + 20% of Face value.
Face value = $5000 / 1.2 = $4166.67 ≈ $4167.

14. A man buys $5000, 12% stock at 150 and sells it when it is at 120. The loss incurred by the man is:

Buying price = $5000.
Selling price = ($5000 / 150) × 120 = $4000.
Loss = $5000 - $4000 = $1000.

15. An investor buys 100 shares of face value $50 each at a discount of 10%. The amount of money invested is:

Amount invested = Number of shares × (Face value - Discount) per share
= 100 × ($50 - 10% of $50) = $4500.

16. If a man receives $2700 as his dividend from 12% stock at $150, the number of shares he has is:

Dividend on 1 share = (12/100) × $150 = $18.
Number of shares = $2700 / $18 = 150.

17. The cost price of a $50 stock at 4% discount, with brokerage 0.1%, is:

Cost price = (Face value - Discount + Brokerage) per share
= $50 - (4% of $50) + (0.1% of $50) = $49.80.

18. A person has some shares of $100 at 8%. If he earns $1600 as a dividend, the number of shares is:

Dividend per share = (8/100) × $100 = $8.
Number of shares = $1600 / $8 = 200.

19. If a $100 stock is at a 20% discount, what is the annual income from $6000 invested in this stock at 10% dividend?

Market value of stock = $100 - 20% of $100 = $80.
Number of shares = $6000 / $80 = 75.
Annual income = 10% of (75 × $100) = $750.

19. If a $100 stock is at a 20% discount, what is the annual income from $6000 invested in this stock at 10% dividend?

Market value of stock = $100 - 20% of $100 = $80.
Number of shares = $6000 / $80 = 75.
Annual income = 10% of (75 × $100) = $750.

20. A man invests $10400 in 6% stock at 104. His dividend per annum is:

Investment = $10400, Stock at = 104.
Face value of stock = ($10400 / 104) × 100 = $10000.
Dividend = 6% of $10000 = $600.

21. A 6% stock yields 8%. The market value of the stock is:

Let the market value be $x.
Then, (6% of $100) / $x = 8%.
$x = (6 / 8) × 100 = $75.

22. A person purchases 120 shares at a nominal value of $60 each. If the dividend is 12.5%, the annual income from the shares is:

Annual income = 12.5% of (120 × $60) = 0.125 × $7200 = $900.

23. An investor buys 500 shares of nominal value $20 each available at 10% premium. The amount of investment is:

Amount invested = 500 × ($20 + 10% of $20) = 500 × $22 = $11000.

24. A company pays a 15% dividend to its shareholders. If an investor’s annual dividend is $1500, the nominal value of his shares is:

Nominal value of shares = (Annual dividend × 100) / Dividend rate = ($1500 × 100) / 15 = $10000.

25. A man buys 200 shares of face value $50 at a 10% discount. The dividend declared at the end of the year is 15%. His annual income from the shares is:

Face value of 200 shares = 200 × $50 = $10000.
Annual income = 15% of $10000 = $1500.