Shares and Dividends

# Class 10 Maths Chapter 3 Shares and Dividends Important Questions

Class 10 Mathematics Chapter 3, 'Shares and Dividends,' is a critical topic that requires thorough understanding and practice. To aid students in their exam preparation, we have compiled a set of important questions related to class 10 Shares and Dividends. These questions are designed as a valuable tool to help students build confidence in their mathematical skills, alleviate doubts, and overcome difficulties they might encounter while studying this topic. students can strengthen their grasp of this fundamental mathematical concept, making it easier for them to excel in their class 10 Mathematics exams.

## Introduction

ICSE class 10 shares and dividendis a fundamental concept in ICSE Class 10 Mathematics that bridges the gap between mathematics and real-world financial scenarios. This chapter delves into the world of investments, dividends, and the allocation of profits among shareholders. Understanding shares, stocks, and the distribution of earnings is crucial not only for academic excellence but also for making informed financial decisions in the future. Through this ICSE class 10 shares and dividend questions, students learn how to calculate dividends, understand stock market dynamics, and grasp the intricacies of company finance. It's an essential topic that equips students with valuable knowledge for both their academic pursuits and practical life.

## What are Shares and Dividends?

Shares in Class 10 Maths Chapter 3 Shares and Dividends represent ownership in a company. When individuals or investors buy shares, they become shareholders and have a stake in the company's ownership. Companies issue shares to raise capital for various purposes, and shareholders can earn money through dividends and capital appreciation.
Dividends as we study in class 10 Shares and Dividends are a portion of a company's profits distributed to its shareholders. They serve as a way for shareholders to receive returns on their investments. Dividends can be calculated based on the number of shares owned and the dividend per share rate declared by the company.

### Class 10 Shares and Dividend Important Questions and Answers

#### (a) ₹1920(b) ₹1952(c) ₹1924(d) ₹1925

Ans. (d) ₹1925

Explanation:
Quoted price = 38·50
No. of shares = 50
⇒ Investment = 38·50 × 50 = ₹1925
⇒ Money requires = ₹1925.

#### (a) 22·0%(b) 22·5%(c) 20·5%(d) 22·6%

Ans. (b) 22·5%

Explanation:
%  return =$$\frac{Annual\space Income×100}{investment}$$
$$\frac{2160×100}{9600}$$
=22⋅5 %

#### Q3. A man invested ₹ 45,000 in 15% ₹ 100 shares quoted at ₹ 125. When the market value of these share rose to ₹ 140. He sold same shares, just enough to raise ₹ 8,400 calculate.(i) The number of shares he still holds.(ii) The dividend due to him on these remaining shares.

Explanation:
Number of shares bought
$$=\frac{45000}{125}=360$$
Number of shares sold to raise ₹ 8,400.
$$=\frac{8400}{140}=60$$
(i) Number of shares he still holds
= 360 – 60 = 300.
(ii) Dividend on these shares
= ₹ (300 × 15)
= ₹ 4,500.

#### Q4. A man invests ₹ 22,500 in ₹ 50 shares available at 10% discount. If the dividend paid by the company is 12%, calculate:(i) The number of shares purchased(ii) The annual dividend received(iii) The rate of return he gets on his investment.Give your answer correct to the nearest whole number.

Explanation:
Given, investment = ₹ 22,500, N.V. = ₹ 50, discount = 10%
∴ M.V.=₹ $$\begin{pmatrix} 50-\frac{10}{100}×100 \end{pmatrix}$$= ₹ 45
(i)Number of shares= $$\frac{Investment}{M.V.}$$
= $$\frac{22500}{45.}$$= 500.Ans
(ii) Annual dividend = Dividend per share × No. of shares
$$\frac{12}{100}×50×100$$
= ₹ 3000 Ans.
(iii)Rate of return = $$\frac{divident}{investment}$$×100%
=$$\frac{3000}{22500}$$ × 100%
= 13.3% = 13% Ans.
(correct to the nearest whole number)

#### Q5. (i) Which is better investment : 7% ₹ 100 shares at ₹ 120 or 8% ₹ 10 shares at ₹ 13·50.(ii) Mamta invested ₹ 10,846 in buying the shares of a company at ₹ 17 each. If the face value of each share be ₹ 10 and company paid 15% dividend at the end of the year, find the dividend earned by her.

Explanation:
(i) Case I.
Income on ₹ 120 = 7% of ₹ 100
So, Income on ₹
$$1 = ₹\frac{7}{120} = ₹ 0.058$$
Case II.
Income on ₹ 13⋅50=8% of 10
= ₹ $$\frac{8×10}{100}=₹\frac{8}{100}$$
So, Income on ₹ 1=$$\frac{\frac{8}{10}}{13.50}$$
= ₹ 0.059
We find that investment in the second case is better than investment in the first case.   Ans.
Market value of 1 share = ₹ 17
Total invested money = ₹ 10,846
Number of shares bought
$$= \frac{10.846}{17} = 638$$
Face value of 638 shares = 638 × ₹ 10
= ₹ 6,380
= ₹$$\begin{pmatrix}6.380×\frac{15}{100} \end{pmatrix}$$
= ₹ 957. Ans.

#### ICSE Class 10 Maths Chapter wise Important Questions

Chapter No. Chapter Name
Chapter 1 Goods and Service Tax (GST)
Chapter 2 Banking
Chapter 3 Shares and Dividends
Chapter 4 Linear inequations
Chapter 5 Quadratic Equations in one variable
Chapter 6 Ratio and proportion
Chapter 7 Factorization
Chapter 8 Matrices
Chapter 9 Arithmetic Progression
Chapter 10 Geometric Progression
Chapter 11 Coordinate Geometry
Chapter 12 Reflection
Chapter 13 Similarity
Chapter 14 Loci
Chapter 15 Circles
Chapter 16 Constructions
Chapter 17 Mensuration
Chapter 18 Trigonometry
Chapter 19 Statistics
Chapter 20 Probability

#### Conclusion

Shares and dividends of ICSE class 10 shares and dividend are fundamental principles in the world of finance and investment. Shares represent ownership in a company, giving shareholders a share of its achievements. Conversely, dividends are the rewards that companies offer their shareholders, often as a portion of their earnings. Proficiency in understanding how shares and dividends function is crucial for those aiming to accumulate wealth or make prudent investments. If you're looking to enhance your skills through additional practice and gain a deeper understanding of the topics covered in the chapter, oswal.io offers an extensive collection of ICSE class 10 shares and dividend questions, to support your quest for a more profound comprehension of the concepts.

#### Q1 : What is a share in  Class 10 Maths Chapter 3 Shares and Dividends, and how does it work?

Ans: share signifies ownership in a company. Acquiring shares of a company's stock transforms you into a shareholder, signifying your ownership stake in that company. Shareholders are entitled to various privileges, including voting rights and the possibility of receiving dividends.

#### Q2 : What are dividends, and how are they calculated?

Ans:  Dividends are like rewards that companies give to their shareholders from the money they make. To figure out how much you get, just multiply the dividend per share by the number of shares you own. For instance, if a company pays $2 for each share, and you have 100 shares, you'd get$200 as your reward.

#### Q3 : What are the different types of shares, and how do they differ?

Ans: In the shares, there are mainly two types: common and preferred. Common shares let shareholders have a say by voting, but they might not get regular dividends. On the flip side, preferred shares don't give you a vote, but they promise a steady, unchanging dividend that comes before any dividends go to common shareholders.

#### Q4 : Can you explain the concept of face value and market value of shares?

Ans: The face value of a share is the nominal value assigned to it when the company is established. It's the initial price at which the share is issued. The market value, on the other hand, is the current price of the share in the stock market, which can fluctuate based on supply and demand.

#### Q5 : What factors can affect the market price of shares?

Ans: Many things can impact the price of shares in the stock market. These include how well the company is doing financially, the overall economic situation, how investors are feeling, and how many people want to buy or sell those shares.

## Chapter Wise  Important Questions for ICSE Board Class 10 Mathematics

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