Question

A man wants to buy 124 shares available at Rs.66 (N.V= Rs.50). How much should he invest?

Answer 1

Hint: Given that, the man wants to buy 124 shares, each share costs Rs.66.
\[{\text{Amount to be invested = (number of shares)(cost of each share)}}\]

Complete step-by-step answer:
Number of shares=124
Cost of each share = Rs.66
Now substitute the values in the formula:
\[{\text{Amount to be invested = (number of shares)(cost of each share)}}\]
Amount to be invested=(124)(66)
=8,184
Therefore, the man have to invest Rs. 8,184

Note: The original value of a share printed in the certificate of the share is called its face value or nominal value (in short, NV). The NV of a share is also known as register value, printed value and par value. The price at which the share is sold or purchased in the capital market through stock exchanges is called its market value (in short, MV). Reason NV is the face value of the company for a buyer from outside the should buy the share for present market value(M.V). So, the N.V does not affect the investing amount to the merchant.