Q1
What is face value?
AA share's original printed value
BThe current market price
CThe dividend amount
DThe company's total profit
ICSEClass 10 (ICSE)MathematicsCh 3 · Topic 1
Shares and Dividends
Shares represent ownership in a company, and dividends are payments made to shareholders from company profits, both important financial conc
Core concept
The face value (nominal value) of a share is its original printed value, while the market value is its current buying/selling price, which can differ.
How it works
Dividend is calculated as a percentage of the face value, so a 10% dividend on a ₹100 face value share pays ₹10 per share.
Why it matters
Investment in shares involves buying shares at market value, with returns coming from dividends and potential capital gains (share price increase).
Key detail
Understanding shares and dividends helps us grasp basic investment concepts and how companies raise capital and share profits.
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Quick notes
• Face value is a share's original printed value.
• Market value is the current buying/selling price.
• These can differ from each other.
• Dividend = percentage × face value.
• 10% dividend on ₹100 face value = ₹10.
• Investment returns come from dividends and capital gains.
• Capital gains come from share price increases.
• This shows basic investment concepts.