Question

If the face value of the share is rupees 100 and market value is 150 if the rate of brokerage be 0.5% what amount should be paid to purchase such 100 shares

Answer 1

Question :-- If the face value of the share is rupees 100 and market value is 150 if the rate of brokerage be 0.5% what amount should be paid to purchase such 100 shares ?

Formula and concept used :--

→ Brokerage is always calculated on Market value of shares.

→ Buying price of 1 share = Marked value + Brokerage..

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Solution :--

Situation (1) :-- At the time of buying shares:

→ Buying price of 1 share = MV + Brokerage

→ 150 + 0.5% of 150

→ 150 + 0.75

→ Rs.150.75

If someone purchases 100 such shares the total cost is 100*150.75 = Rs.15075.

Here Rs.15000 is the share price and Rs.75 is the brokerage paid.

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Situation (2) :- At the time of selling shares.

→ Selling price per share = MV - Brokerage

→ 150 - 5% of 150 = 150 - 0.75

→ Rs.149.25.

If someone sells 100 such shares, he will get,

→ 100*150 - 75 = Rs.14925 (after selling 100 such shares.)

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