Share Market — O/L Mathematics

What must I remember about Share Market?

• Shares & Nominal Value: Capital of a company divided into equal units called Shares; Face/Nominal Value is the original statutory price per share fixed by the company.
• Market Price (Market Value): The price at which a share is currently bought or sold on the Colombo Stock Exchange (CSE); can be higher than (at premium), lower than (at discount), or equal to (at par) nominal value.
• Dividends & Annual Income: Portion of company profits distributed to shareholders: Dividend per share is declared either as a percentage of nominal value or as a fixed rupee amount per share; Annual Income = Number of shares × Dividend per share.
• Rate of Return (Yield Percentage): Actual percentage return earned on capital invested: Rate of Return = (Annual Dividend Income / Total Capital Invested) × 100%.

Test yourself (1 minute)

1. Dividend calculated on Nominal Value

   Dividend percentage is ALWAYS calculated on the NOMINAL (FACE) VALUE of the share, NEVER on the market purchase price.

2. Investment calculation

   Number of shares purchased = Total money invested / Market price per share.

3. Capital Gain / Loss on Selling

   Capital Gain = (Selling Market Price - Buying Market Price) × Number of shares; Total Income from transaction = Total Dividends + Capital Gain.

Practise Share Market questions today

Source: NIE G.C.E. (O/L) Mathematics Syllabus (Grade 11, Unit 10)

What comes next?

Next in the syllabus

Where does Share Market fit in the syllabus?

Grade 11 · Term 2