Class 10: Shares and Dividend

$\displaystyle \textbf{Nominal Value (N.V.) or Face Value}$
$\displaystyle \text{The Nominal Value (N.V.) of a share is also called its Face Value (F.V.).}$
$\\$
$\displaystyle \textbf{Market Value (M.V.)}$
$\displaystyle \text{The price at which a share is bought or sold in the market is called its Market Value (M.V.).}$
$\displaystyle \text{The Market Value may be greater than, equal to, or less than the Face Value depending on}$
$\displaystyle \text{the demand for the share and the company's profitability.}$
$\\$
$\displaystyle \textbf{Possible Scenarios}$
$\displaystyle \text{1. Market Value = Face Value (Share is said to be At Par)}\Rightarrow\text{M.V.}=\text{N.V.}$
$\displaystyle \text{2. Market Value > Face Value (Share is said to be Above Par or At a Premium)}\Rightarrow\text{M.V.}>\text{N.V.}$
$\displaystyle \text{3. Market Value < Face Value (Share is said to be Under Par or At a Discount)}\Rightarrow\text{M.V.}<\text{N.V.}$
$\\$
$\displaystyle \textbf{Profit on Sale of Shares}$
$\displaystyle \text{Profit is the difference between the selling price and the purchase price of the shares.}$
$\displaystyle \text{Depending on tax laws, capital gains may be subject to short-term or long-term taxes.}$
$\\$
$\displaystyle \textbf{Dividend}$
$\displaystyle \text{Apart from capital gains, shareholders also earn Dividend.}$
$\displaystyle \text{Dividend is always calculated on the Face Value (Nominal Value) of the share.}$
$\displaystyle \text{In India, the Face Value is generally Rs. }10\text{ per share, though it may be lower if the}$
$\displaystyle \text{company has split its shares.}$
$\\$
$\displaystyle \textbf{Important Formulae}$