Q.What is the amount realised on selling 8% Stock of 200 shares of Face Value ₹ 100 at ₹ 50 ?

Amount realised on a sale $=$ number of shares $\times$ market price $=200\times 50=₹10{,}000$.

When shares are bought or sold, the money that changes hands is based on the market price (₹50 here), while the face value (₹100) and the rate (8%) are used only for computing dividend/income, not the sale proceeds.

Step — Amount realised:

$\text{Amount}=\text{No. of shares}\times\text{market price}=200\times 50 = ₹10{,}000.$

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The dividend on 200 shares of face value ₹100 at 8% is ₹1600.

Dividend is always reckoned on the face (nominal) value of the shares, not on the market price.

• Dividend per share $=8\%$ of ₹$100 = \dfrac{8}{100}\times 100 = ₹8$. …

Dividend is computed as a percentage of the face value of the share, so the answer is option (c).

A company declares its dividend as a rate percent, and this rate is always applied to the face (nominal) value of a share, never to its market price. For example, a 10% dividend on a share of face value ₹100 gives ₹10 per share, regardless of whether the share trades …

Market value $=100-9.5=90.5$; add buying brokerage $0.5\%$ of ₹100 $=0.5$; purchase price $=₹91$.

Face (nominal) value $=₹100$. A discount of $9\tfrac12\% = 9.5\%$ lowers the price below face value, so the market value is

$MV = 100 - 9.5\%\text{ of }100 = 100 - 9.5 = ₹90.5$

Brokerage is charged on the face value at $\tfrac12\% = 0.5\%$:

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At a $9\tfrac{1}{2}\%$ discount the share costs $₹90.50$; adding $\tfrac{1}{2}\%$ brokerage ($₹0.50$) gives a purchase price of $₹91$.

Face value of the share $=₹100$.

Discount $= 9\tfrac{1}{2}\% = 9.5\%$ of $100 = ₹9.50$. So the market (quoted) price when bought at a discount is:

$100 - 9.50 = ₹90.50.$

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A dividend is always expressed as a percentage of the face (nominal) value of a share.

A company distributes part of its profit to shareholders as a dividend. It is declared as a rate — a percentage — on the face value of the share (for example, a $10\%$ dividend on a $₹100$ share means …