Stock and Shares MCQ Questions and answers-

1.What is the investment made if one invests in 15% stock at 50 and earns Rs.2000?
ANSWER: 5000 Explanation: To earn Rs.15, investment = Rs.50.
Hence, to earn Rs.1500, investment = (1500*50)/15
= Rs.5000

2. Find the number of shares that can be bought for Rs.8200 if the market value is Rs.20 each with brokerage being 2.5%.
Veiw Answer
ANSWER: 400 Explanation: Cost of each share = (20 + 2.5% of 20) = Rs.20.5
Therefore, number of shares = 8200/20.5 = 400

3.A company pays 12.5% dividend to its investors. If an investor buys Rs.50 shares and gets 25% on investment, at what price did the investor buy the shares?
Veiw Answer
ANSWER: 25 Explanation: Dividend on 1 share = (12.5 * 50)/100 = Rs.6.25
Rs.25 is income on an investment of Rs.100
Rs.6.25 is income on an investment of Rs. (6.25 * 100)/25 = Rs.25

4. Ram can finish a puzzle in 3 hours and Shyam can do the same in 2 hours. Both of them finish the puzzle and get 15 candies. What is Ram’s share?
Veiw Answer
ANSWER: 6 Explanation: The question is based on efficiency to do work.
Ram can finish a puzzle in 3 hours. Shyam can finish the puzzle in 2 hours.
=>In one hour Ram can finish 1/3rd of a puzzle
=>In one hour Shyam can finish half the puzzle
A total of 15 candies are to be shared amongst both of them
Hence Ram’s share must be = ((Work done by Ram in 1 hour)/(Work done by Shyam in one hour)+(Work done by Ram in hour))*15
=> 1/3/((1/2)+(1/3))*15
=> (1/3/(5/6))*15
=> 6/15*(15)
=>6 candies

5. What investment must be made to obtain Rs 650 income from 10% stock at Rs 96?
Veiw Answer
ANSWER: 6240 Explanation: Given market value = Rs 96
Required income = Rs 650
We assume the face value to be Rs 100.
To obtain 10% of face value, investment had to be Rs 96. So, in order to receive Rs 650, required investment is:
9.6*650=6240
Thus the investment should be Rs 6240.

6. Price at which stock is sold to investors by investment banks is called
Veiw Answer
Answer: Gross proceeds

7.Underwriter spread of stock is $17000 and net proceeds of stock are $24000 then gross proceeds are
Veiw Answer
Answer: $41,000