Shares and Dividends
ICSE · Class 10 · Mathematics
Summary of Shares and Dividends for ICSE Class 10 Mathematics. Key concepts, important points, and chapter overview.
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Shares and Dividends is a fundamental chapter in commercial mathematics that deals with how companies raise capital by selling shares and distribute profits to shareholders. This chapter is essential for understanding basic investment concepts and financial literacy, helping students grasp how the s
Key Concepts
Capital is the total money invested
Capital is the total money invested in a company. Shares are small parts into which capital is divided. Nominal/Face Value is the original printed pri
Premium Shares
Premium Shares: Market price > Nominal value (e.g., ₹100 share at ₹120). Par Shares: Market price = Nominal value. Discount Shares: Market price < Nom
Dividend is the profit distributed by
Dividend is the profit distributed by company to shareholders, always calculated as a percentage of nominal value, not market value. It represents the
Money invested = Number of shares
Money invested = Number of shares × Market value of one share. Number of shares = Money invested ÷ Market value of one share. These basic formulas hel
Annual dividend = Rate of dividend
Annual dividend = Rate of dividend × Number of shares × Nominal value of one share. This gives the total yearly income from share investment.
Learning Objectives
- Understand the basic terminology related to shares and dividends
- Learn to calculate the number of shares purchased given an investment amount
- Calculate dividend income and rate of return on investments
- Solve problems involving premium and discount shares
- Compare different investment options to determine the better choice
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