Shares and Dividends

Defination:Capital stock is divided into a number of equal units and Each unit is called a it is singular so it is “share”.if we take it as plural then it will be “shares.”
The part of profit of company which is distributed among the shareholders is known as Dividend.
There are three kinds of Shares:
(i) Premium Share:-if the market value of a share is more than its face value then it is called as premium share or above par.
(ii) At Par : If the market value of share is equal to its face value,then it is called at par.
(iii) Discount Share:-If the market value of a share is less than its face value ,then it is said to be discount or below par.
Example:- the statement 20%,Rs.100 shares at Rs 110 means
face value =100
market value=110(as it is greater than face value)
Dividend earned on one share is 20% of the face value means dividends=20rs


1.Number of shares=Total face value of the shares/Face value of one share
2.Income(Dividend) per share=Nominal Value of one share*Rate o dividend/100
3.Annual income=Income or dividend per share *No. of shares
4.Rate of interest on the investment(of yield)=(total income*100/total investment)%


Dividends are paid out by check,cash,account tansfer or additional stock.if they are giving dividends then you have to select “mode of cash”.mode of cash is depend on organization.some organization allow money by check only and some organization allow money by only account transfer.if you select good broker then it will be good thing.
example:- suppose if you own 10 shares you will receive 10 times as much from a dividend as someone who owns one share of the stock. You must own the stock before organization or company declares dividends


  1. Explain share and share-holders Defination.
  2. Market value and Nominal value using tree diagram.
  3. Show a company and it has many share holders by diagram(you can show company name xyz)
  4. Give Different example.
  5. Explain example.
  6. Built it by PPT Presentation