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About Shares & Dividends — Class 10 ICSE

Calculate dividend income, return on investment, and solve problems on shares at par, premium, and discount. This topic is part of the ICSE Class 10 mathematics syllabus (chapter: Chapter 13). On this page you can practice 44 questions across three difficulty levels — 19 easy, 17 medium, and 8 hard — each with a visual step-by-step solution, plus a timed 23-question mastery test with a live leaderboard. Worked examples and sample questions from the topic are below.

What you'll learn in Shares & Dividends

  • Introduction to Shares: Owning a Piece of the Company
  • Market Price, Premium, Discount, and Dividends
  • Investment and Rate of Return
  • Advanced Applications and Problem Solving
  • Summary, Key Takeaways, and Exam Readiness

Interactive lesson · about 15 minutes · checkpoint question after every unit

Shares & Dividends — solved examples for Class 10 ICSE

Example 1easy

Rohan states that the dividend received on shares is always calculated based on their Market Value. Is Rohan's statement correct?
  1. A)No, dividend is calculated on the Nominal (Face) Value of the share.
  2. B)Yes, because market value reflects the current worth.
  3. C)Yes, but only if the shares are bought at par.
  4. D)No, dividend is calculated on the total investment made.

Step-by-step solution

  1. Dividends represent a share of the company's profits distributed to shareholders.
  2. The dividend rate is consistently declared and calculated on the Nominal (or Face) Value of each share, not on its Market Value, which can fluctuate daily.

Answer: No, dividend is calculated on the Nominal (Face) Value of the share.

Example 2medium

Mr. Sharma invests ₹12,000 in shares of a company. The Face Value of each share is ₹100, and the Market Value is ₹120. If the company declares an annual dividend of 15%, what will be Mr. Sharma's total annual dividend income?
  1. A)₹1,500
  2. B)₹1,800
  3. C)₹1,200
  4. D)₹1,000

Step-by-step solution

  1. Calculate the number of shares bought:
    Numberofshares=TotalInvestment/MarketValuepershare=12,000/120=100sharesNumber of shares = Total Investment / Market Value per share = ₹12,000 / ₹120 = 100 shares
  2. Calculate the dividend per share:
    Dividendpershare=15Dividend per share = 15% of Face Value = 15/100 × ₹100 = ₹15
  3. Calculate the total annual dividend income:
    TotalDividendIncome=Numberofshares×Dividendpershare=100×15=1,500Total Dividend Income = Number of shares × Dividend per share = 100 × ₹15 = ₹1,500

Answer: ₹1,500

Example 3hard

Ravi invested in shares. He calculated his annual dividend income by multiplying the number of shares by the market value per share and then by the dividend percentage. Which of the following statements correctly identifies the mistake in Ravi's calculation?
  1. A)A) Dividend is always calculated based on the Face Value (Nominal Value) of the shares, not the Market Value.
  2. B)B) He should have added brokerage charges before calculating the dividend.
  3. C)C) The dividend percentage should be applied to the total investment, not per share.
  4. D)D) He forgot to subtract the tax on dividend income.

Step-by-step solution

  1. Step 1: Understand the basis of dividend calculation. Dividends are profits distributed to shareholders, and they are always calculated on the Face Value (also known as Nominal Value or Par Value) of the shares.
  2. Step 2: Identify Ravi's error. Ravi used the Market Value per share for dividend calculation, which is incorrect. The Market Value fluctuates based on demand and supply, while the Face Value is a fixed value printed on the share certificate, used for dividend purposes.

Answer: A) Dividend is always calculated based on the Face Value (Nominal Value) of the shares, not the Market Value.

Practice questions on Shares & Dividends

  1. Q1.easy

    If a share with a Nominal Value of ₹100 is quoted at ₹120 in the market, which of the following statements is true?
    1. A)The share is being sold at a discount of ₹20.
    2. B)The share is being sold at a premium of ₹20.
    3. C)The share is being sold at par.
    4. D)The market value is less than the nominal value.
    Show answer

    Answer: The share is being sold at a premium of ₹20.

    Hint: Compare the Market Value with the Nominal Value. When the Market Value is higher, it indicates a premium.

  2. Q2.easy

    Ms. Sharma buys 50 shares of a company. Each share has a Nominal Value of ₹50 and is quoted at a Market Value of ₹60. What is her total investment?
    1. A)₹2500
    2. B)₹5000
    3. C)₹3000
    4. D)₹3500
    Show answer

    Answer: ₹3000

    Hint: Total investment is calculated by multiplying the number of shares by their market value.

  3. Q3.easy

    Mr. Kapoor invested ₹10,000 in shares quoted at ₹125 each. How many shares did he buy?
    1. A)80 shares
    2. B)100 shares
    3. C)125 shares
    4. D)1000 shares
    Show answer

    Answer: 80 shares

    Hint: To find the number of shares, divide the total investment by the market value of one share.

  4. Q4.medium

    A company's shares have a Face Value of ₹50. An investor buys shares when they are at a premium of ₹10. If the total investment made is ₹6,600, how many shares did the investor purchase?
    1. A)110 shares
    2. B)120 shares
    3. C)132 shares
    4. D)100 shares
    Show answer

    Answer: 110 shares

    Hint: Determine the Market Value of one share first, considering the premium. Then use the total investment to find the number of shares.

  5. Q5.medium

    Which of the following statements about shares and dividends is TRUE?
    1. A)Dividend is always calculated as a percentage of the Market Value of a share.
    2. B)A share bought at a discount means its Market Value is higher than its Face Value.
    3. C)The annual dividend percentage is declared on the Face Value of the share.
    4. D)Investment in shares is always equal to the number of shares multiplied by their Face Value.
    Show answer

    Answer: The annual dividend percentage is declared on the Face Value of the share.

    Hint: Recall the definitions of Face Value, Market Value, premium, discount, and the basis for dividend calculation.

  6. Q6.medium

    Mrs. Singh invested ₹27,000 to buy 450 shares of a company. What was the Market Value of each share?
    1. A)₹60
    2. B)₹50
    3. C)₹55
    4. D)₹65
    Show answer

    Answer: ₹60

    Hint: The total investment is simply the product of the number of shares and the market value per share.

  7. Q7.hard

    An investor buys 100 shares of FV ₹50 at a premium of ₹20. He pays 1% brokerage on the market value. If the company declares a 15% dividend, what is the investor's actual percentage return on his investment? (Round to two decimal places)
    1. A)A) 9.85%
    2. B)B) 10.50%
    3. C)C) 10.71%
    4. D)D) 10.82%
    Show answer

    Answer: C) 10.71%

    Hint: Remember to include the brokerage in the total investment cost. The dividend is always calculated on the Face Value.

  8. Q8.hard

    A man receives an annual dividend of ₹1500 from shares of FV ₹25, which pay a 12% dividend. If he bought these shares when their Market Value was ₹30, how many shares did he purchase?
    1. A)A) 400 shares
    2. B)B) 500 shares
    3. C)C) 600 shares
    4. D)D) 750 shares
    Show answer

    Answer: B) 500 shares

    Hint: First, find the dividend earned per share using the Face Value and dividend rate. Then, use the total dividend income to find the total number of shares.

  9. Q9.hard

    An investor buys 200 shares of a company whose Face Value is ₹60. He buys them at a 10% discount. If the company declares a 15% dividend, what is the percentage return on his investment?
    1. A)A) 12.5%
    2. B)B) 16.67%
    3. C)C) 20%
    4. D)D) 25%
    Show answer

    Answer: D) 25%

    Hint: Calculate the Market Value after the discount. This will be your per-share investment. Then calculate the dividend per share based on Face Value. Finally, determine the percentage return.

These are 9 of the 44 questions available for Shares & Dividends. Start practicing above to unlock visual solutions, AI coaching, and the topic leaderboard — completely free.