Stocks, Shares and Partnership Tricks and Formulas

Stocks and Shares

  • Brokerage: The broker’s charge is called brokerage.

  • When stock is purchased, brokerage is added to the cost price.

  • When the stock is sold, brokerage is subtracted from the selling price.

  • The selling price of a Rs. 100 stock is said to be:

    • at par, if S.P. is Rs. 100 exactly;

    • above par (or at premium), if S.P. is more than Rs. 100;

    • below par (or at discount), if S.P. is less than Rs. 100.

  • By ‘a Rs. 800, 9% stock at 95’, we mean a stock whose face value is Rs. 800, annual Interest is 9% of the face value and the market price of a Rs. 100 stock is Rs. 95.

Partnership

  • If a number of partners have invested ina business and it has a profit, then Share Of Partner =(Total_Profit×Part_Share/Total_Share) Chain Rule

  • The cost of articles is directly proportional to the number of articles.

  • The work done is directly proportional to the number of men working at it.

  • The time (number of days) required to complete a job is inversely proportional to the number of hours per day allocated to the job.

  • Time taken to cover a distance is inversely proportional to the speed of the car.