On this page, we have compiled the complete list of short tricks and formula for CSAT questions related to Shares, Dividend and Stocks.
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- Stock: It is the capital of a company, the unit of which is usually Rs.100 unless otherwise stated
- Cash: It is the money spent or received while buying and selling stocks.
- Market Price or Marked Value (MV): The rate at which the stock is sold or bought.
- "4 percent at 90": It means that the stock of Rs.100 can be purchased for Rs.90 and Rs.4 is the annual income on Rs.100 or on Rs.90 cash.
- Brokerage: it is the commission paid to the stock dealer on the sale or purchase of stocks.
While buying stock, add brokerage to the market value and while selling stock, subtract brokerage from the market value.
$$\text{stock} = \frac{investment \times 100}{MV}$$
$$\text{stock} = \frac{income \times 100}{rate}$$
$$\text{investment} = \frac{stock \times MV}{100}$$
$$\text{investment} = \frac{income \times MV}{rate}$$
$$\text{income} = \frac{stock \times rate}{100}$$
$$\text{income} = \frac{investment \times rate}{MV}$$