Hi students, Welcome to **Amans Maths Blogs (AMB)**. In this article, you will get **Shares and Dividends Class 10 Maths Revision Notes Chapter 3 PDF**.

Contents

Suppose a company start with a business with an investment of Rs. 1000000. Then,

The total amount invested to start a company is called **Capital Stock**.

Generally it is not possible for one individual to manage the whole amount. So the total amount is divided into equal parts called **Shares**.

The shares purchased by an individual is also called **Stock**.

The persons who buy these shares are called **Shareholders** or **Stockholders**.

There are two types of shares known as **Common Shares** and **Preferred Shares**.

The common shares are also called **Equity Shares**.

The profit gained by the company that is distributed among the shareholders is called **Dividends**. It is calculated on the face value of a share and expressed as percentage.

The preferred shareholders have a first claim on the dividend. When they have been paid, the remaining profit is distributed among the common shareholders.

The original value of a share at which the company sells it to investors and which is printed on the share certificate is called **Nominal Value (NV)** or **Printed Value (PV)** of the shares.

The price at which the stock is bought or sold, in the market is called the **Market Value (MV)** or **Cash Value (CV)**. The market value of a share keeps changing from time to time.

If the market value is more than the face value of the share, the share is called to be **above par**.

If the market value of a share is the same as its face value, then the share is called to be **at par**.

If the market value is less than the face value of the share, then the share is called to be **below par** or at a discount.

There are following formulas used to solve the questions of * Shares and Dividends*:

1. Nominal Value of Shares = No of Shares X Nominal Value per share

2. Premium = No of Shares X Premium per share

3. Cost of Share = Nominal Value of Shares + Premium

4. Discount = No of Shares X Discount per share

5. Cost of Shares = Nominal Value of Share – Discount

6. Cost of Stock = No of Stock X Rate per Stock

7. Annual Dividends on Shares = (Nominal Value of Shares X Rate of Dividend) / 100

8. Sum of money obtained by selling shares = No of Shares X Selling Rate per share

9. No of Share bought = Investment / Market Value per Share

10. Market Price per Share = Cost of Shares / No of Shares.

11. Cost of Share = No of Shares X Market Value per Share

12. Annual Income from Investment = Nominal value of Shares X Rate of Dividends / 100

13. TDS (Tax Deducted at Sources) = Annual Dividend X Rate of Income Tax / 100

14. Amount of Money Invested = No of Shares X Market value per Share

14. Percentage Return on Investment = (Annual Dividend x 100) / Cost of Investment

15. Sale proceeds of n Shares = Nominal value of Shares + 50% Premium

**Read** : ** S Chand Class 10 ICSE Maths Shares and Dividends Exercise 3A Solutions PDF**

**Read** : **S Chand Class 10 ICSE Maths Shares and Dividends Exercise 3B Solutions PDF**