Stock & Shares – Quantitative Aptitude Notes

Stock & Shares

Important Terms

Capital: Money

Shares or Stock: A unit of ownership of a company. It can be bought in exchange for money.

Shareholder or Stockholder: A person who owns stock in the company

Dividend: A payout issued by the company to all stockholders or shareholders. The dividend is paid per share owned by shareholders.

Face Value: The value of a share decided by the company. This is also the initial value of a share.

Market Value: The value of the share is decided by market factors.

Brokerage: A Broker negotiates between selling and buying parties to facilitate the trade of shares. A broker may charge a commission on each trade. This charge is called Brokerage.

By Rs. x, y% stock at z, we mean

x: Face value of stock

y: Dividend per stock

z: Current Market Value of stock