Shares and Dividends — Part 1: Shares, dividend and income: visual lesson, ICSE Class 10 Mathematics

Lesson

Shares and Dividends, Part 1

Own a small part of a company and share its profit.

In this lesson you will

Two values for every share: face value and market value.

Concept

Use face value, market value, premium, discount and dividend
Find the market value from a quote
Find the number of shares bought for a sum of money
Find the dividend on one share and the annual income

Concept

The face value (nominal value) is printed on the share and never changes. The market value is today's price.

The language of shares.
Term	Meaning
Face (nominal) value, FV	the value printed on the share; fixed
Market value, MV	the price at which the share is bought or sold today
Dividend	the part of the profit paid on each share, as a per cent of the FV
Investment	money spent buying shares $=$ number of shares $\times$ MV
Annual income	total dividend received in a year