Knowledge about Shares and Dividends. Shares and Dividends is a chapter in the Math subject for Class 10 students. Find revision notes and explanation of important terms and concemts.
Organizations need money to operate their business, and also to fund new projects and expansion plans. There are various ways in which they arrange for that money, one way is to raise money from public. The amount of money required is called capital, which is then divided into small equal parts, and each part is called “share“.
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The company then issues a prospectus, explaining why they need the money and invites the public to invest their money in the company. The company raises the required amount of capital by allotting these shares to the public. The value of a share may be Re 1, Rs 10, Rs 100, Rs 1000, etc.
In India, an organization can raise money from the public only if it’s registered under the Indian Companies Act. Such an organization is called a public limited company.
A person who purchases shares of the company becomes a shareholder (part owner) of the company. They are called Shareholders or Stockholders.
If the company does well, shareholders reap the benefits. But if the company fairs poorly, the value of the shares decline and the shareholder may lose money.
Important points about Shares:
The original value of a share that is allotted to the public is called its face value or nominal value
The price at which the share is sold or purchased in the capital market through stock exchanges is called its market value.
As the company’s business expands and the company becomes more profitable, share prices increase
But if the business takes a hit (due to economy being weak, or some poor decision on part of management), the share prices decrease shareholders can get their money back by selling their shares in the market (through stock exchanges).
At the end of the year, a company may decide to distribute a part of its annual profit among the shareholders. This amount is called dividend. The dividend is always based on the face value of the share, and not its market value.
Shares are also commonly known as Stocks. Shares can be further categorized as Common shares and Preferred Shares (they have priority over the company’s income).
Question: Project on SHARES
(1)What are shares? Why do companies issue shares?
(2) Give a brief history of share market — journey from offline to online trading.
(3) Explain the two important types of shares and differentiate between them with the help of a flow chart and pictures related to it.
(4) Explain the terms related to shares – Nominal value, Market value,Dividend, at par, above par and below par.
(5) Explain the procedure for trading in the stock market.
(6) Give a brief description of BSE, NSE, Sensex, Nifty and also their role in the share market.
(7)What is SEBI? Explain its functions.
(8) What is a bull market and a bear market?
Field work:
Students have to collect data for 10 days of the market value of shares of the following 5 different companies – (i) HDFC Bank. (ii) Adani Enterprises. (iii) Reliance Industries Ltd. (iv) Infosys Ltd. (v) TATA steel.
a) For each company, provide information in the tabular form: Date, Market Value. On the plane side of project sheet, stick picture/s of logo of respective company.
b) Draw a line graph for each company showing the price variation for 10 days.
c) Write the highest and lowest market value of the shares for the given period in a table as given below: Name of the company, Highest market value, Lowest market value.
d) On the basis of your data, advice which would be a good company to invest in?
Question) Students will find out the share price of the four companies listed below, by logging on to the website http://www.moneycontrol.com/stocksmarketsindia/ for 2 working days- Monday 13th May 2019 and Friday 17th May 2019 and list the share prices in the table below. They will compute the value for 100 shares of the company when bought/ sold on the given day and compare the profit percentages of the four companies to conclude which company shares are most profitable to buy.
Visit the website listed above or any other website showing the current share prices and fill in the details in the following table to arrive at your conclusion as to which company shares are the most profitable. The number of shares is 100
Name of the company (TCS ltd, Reliance, Mahindra, Infosys)
Share price on 13th May 2019
Investment made for 100 shares on 13th May
Share price on 17th May 2019
Amount received on selling 100 shares on 17th May
Profit % [Not including dividend]
Question) Topic: Shares
Students have to collect data on shares of 5 different companies. Find the answer to the following:
Nominal Value. Rate of dividend paid previous year. Market values for 15 days prior to project.
Working:
- Calculate the total income one would obtain if he/she held 20 shares of each company purchased at nominal value.
- What is demat account?
- Draw graph showing the price variation foe last 15 days
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