Question
Download Solution PDFA person invests ₹1250 in a share worth ₹10. When the market price of the share becomes ₹9.50, he sells it. There is loss to him.
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFFormula Used:
- Total selling price = Market price per share × Number of shares sold
- Number of shares purchased = Initial investment / Cost per share
- Loss = Initial investment - Total selling price
Explanation:
Initial investment = ₹1250
Cost per share = ₹10
Number of shares purchased = Initial investment / Cost per share
⇒ Number of shares purchased = ₹1250 / ₹10 = 125 shares
Market price when sold = ₹9.50 per share
Total selling price = Market price per share × Number of shares sold
⇒ Total selling price = ₹9.50 × 125 = ₹1187.50
To calculate the loss, you can subtract the total selling price from the initial investment:
Loss = Initial investment - Total selling price
⇒ Loss = ₹1250 - ₹1187.50 = ₹62.50
So, there is a loss of ₹62.50 when the person sells the shares at ₹9.50 each after initially investing ₹1250 in them.
Last updated on Jul 3, 2025
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