Class 10 Maths - ICSE
Shares and Dividends
The chapter 'Shares and Dividends' in Class 10 ICSE Commercial Mathematics introduces students to the practical world of corporate finance and investment. It teaches how companies raise capital by dividing ownership into small units called shares, and how investors earn returns through dividends. For board exams, this chapter is crucial as it consistently features a dedicated 3-to-4-mark word problem in Section B of the paper. Mastering this chapter requires a strong grasp of financial terminology such as nominal value, market value, dividend percentage, and return on investment, enabling students to score full marks with accurate calculations.
Start Learning FreeKey Concepts
Nominal Value (Face Value)
The original printed value of a share as stated on the share certificate, which remains constant and is used to calculate the dividend.
Market Value
The price at which a share is bought or sold in the stock market, which fluctuates based on demand and supply and determines the actual investment cost.
Dividend
The annual profit distributed by a company to its shareholders, always calculated as a fixed percentage of the Nominal Value of the shares.
Par Value, Premium, and Discount
Shares are sold at par when Market Value equals Nominal Value, at a premium when Market Value is higher, and at a discount when Market Value is lower.
Rate of Return (Yield)
The actual percentage return an investor gets on their invested money, calculated using the annual income and the total investment.
Important Formulas
Board Exam Info
In the ICSE Class 10 Mathematics examination, this chapter typically carries about 3 to 4 marks. It usually appears as a compulsory or choice-based problem in Section B. Common question types include calculating the total investment, annual income, number of shares bought, and the percentage return on the investment when shares are bought at a premium or discount.
Frequently Asked Questions
Should dividend be calculated on Market Value or Nominal Value?
Dividend is always calculated on the Nominal Value (Face Value) of the share, never on the Market Value.
How do I know whether to use Market Value or Nominal Value when finding total investment?
Always use Market Value to find the total investment because that is the actual price you pay to buy the shares from the market.
What is the difference between Face Value and Market Value?
Face Value is the permanent printed value of the share set by the company, while Market Value changes daily based on stock market conditions.
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