Question

Mr. Abhishek purchased 30 shares of F.V. Rs. 10 on 18th Dec. 2014, at Rs.36 Per share. On 13th Feb. 2015 the company decided to split all the shares from F.V. Rs. 10 to Rs 2 per share. On 2 nd March 2015 the market price of 1 share was Rs. 8 per share. Find gain or loss if he sells all the shares on 2 nd March 2015
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Answer 1

Answer:

Mr. Abhishek faced a gain of Rs. 120.

Explanation:

• Case I : (Purchasing)s

On 18th Dec. 2014

Total no. of Shares = 30 Shares

M.V. = Rs 36 per Share

F.V. = Rs 10

Total amount invested = No. of Shares × M.V.

$\longrightarrow$ 30 × 36

$\longrightarrow$ 1,080

Total amount invested = Rs 1,080

On 13th Feb. 2015 the company decided to split all the shares from F.V. Rs. 10 to Rs 2 per share

$\rule{300}{1.5}$

• Case II -

On 2 nd March 2015, he sold the shares and the market price of 1 share was Rs. 8 per share

No. of shares held on 2 nd March 2015

$\longrightarrow \: \sf{\dfrac{30 \times 10}{2} = 150}$

$\longrightarrow$ 150 × 8

$\longrightarrow$ 1,200

Total amount = 1,200

Gain = 1,200 - 1,080 = 120

Therefore,

Mr. Abhishek faced a gain of Rs. 120.