Shares and Dividends — Important Questions
13 hand-picked ICSE Class 10 Maths important questions for Shares and Dividends, each with a full model answer — the formats and topics most likely to appear in your board exam.
- 13
- Questions
- 6
- Question types
- 32
- Total marks
- ₹0
- With answers
High-yield ICSE Shares and Dividends questions test the difference between nominal (face) value and market value, computing dividend as , finding the number of shares as , and the percentage return . Comparison-of-investment and change-of-investment problems appear almost every year.
About Shares and Dividends
In the ICSE Class 10 Maths chapter Shares and Dividends you buy shares at their market value while dividends are always paid on the nominal (face) value. You compute annual income (dividend), the number of shares bought, the money invested, and the percentage return on the investment, and you compare or switch between different investments.
Key concepts & formulas
Dividend is always a percentage of the nominal (face) value. A share bought above face value is at a premium, below face value is at a discount. Investment number of shares market value.
Number of shares
Buying at a premium lowers the yield below the dividend rate; buying at a discount raises it above.
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Important questions with answers
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| Question type | Count | Marks |
|---|---|---|
| MCQ | 4 | 1 |
| Assertion–Reason | 1 | 1 |
| Very Short | 2 | 2 |
| Short Answer | 3 | 3 |
| Long Answer | 2 | 5 |
| Case-based | 1 | 4 |
Multiple-choice questions (1 mark)
The dividend on a share is always calculated on its:
- (a)
Nominal (face) value
- (b)
Market value
- (c)
Investment
- (d)
Premium
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Answer: (a) Nominal (face) value.
A company declares a dividend as a percentage of the face value of a share, regardless of the price at which it is traded.
A share pays a dividend of . The dividend per share is:
- (a)
- (b)
- (c)
- (d)
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Answer: (a) .
Dividend per share.
A man invests in shares that are quoted at a market value of . The number of shares he buys is:
- (a)
- (b)
- (c)
- (d)
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Answer: (a) .
Number of shares
A share is bought at and pays a dividend of . The percentage return on the investment is:
- (a)
- (b)
- (c)
- (d)
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Answer: (a) .
Dividend per share ; return
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Practise free with the AI tutor →Assertion–Reason questions (1 mark)
Assertion (A): Buying a share at a premium gives a percentage return lower than the declared dividend rate.
Reason (R): The percentage return is the dividend expressed as a percentage of the market value, which exceeds the nominal value when the share is at a premium.
- (a)
Both A and R are true and R is the correct explanation of A
- (b)
Both A and R are true but R is not the correct explanation of A
- (c)
A is true but R is false
- (d)
A is false but R is true
Show model answer
Answer: (a) Both are true and R explains A: dividend is fixed on the nominal value, but return divides it by the larger market value, so at a premium the return falls below the dividend rate.
Very short answer questions (2 marks)
A man holds shares of nominal value each in a company paying a dividend of . Find his annual dividend income.
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Total nominal value
Dividend
A share pays a dividend of and gives a return of to the buyer. Find the market value of the share.
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Dividend per share
Return
Short answer questions (3 marks)
A man buys shares of nominal value each at a premium of . The company pays a dividend of . Find (i) his investment, (ii) his annual dividend, and (iii) his percentage return.
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Market value
(i) Investment
(ii) Dividend
(iii) Return
A man invests in shares available at a discount of . The company pays a dividend of . Find the number of shares he buys and his annual income.
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Market value
Number of shares
Annual income
A man wants an annual income of from shares of nominal value each. If the shares are available at a discount of , find the number of shares he must buy and the sum he must invest.
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Dividend per share
Number of shares needed
Market value
Investment
Long answer questions (5 marks)
Mr. Roy buys shares of face value each at in a company paying a dividend. He later sells all the shares at each and invests the whole proceeds in shares quoted at paying an dividend. Find:
(i) his original annual dividend,
(ii) the sale proceeds,
(iii) the number of new shares he buys,
(iv) his new annual dividend, and
(v) the change in his annual income.
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(i) Original dividend
(ii) Sale proceeds
(iii) New shares
(iv) New dividend
(v) Change decrease in annual income.
A company has shares of nominal value each and declares an annual dividend of . Mr. Verma owns of these shares, bought at each. Find:
(i) the total dividend paid by the company,
(ii) Mr. Verma's annual dividend,
(iii) his total investment, and
(iv) his percentage return, correct to two decimal places.
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(i) Total dividend
(ii) Verma's dividend
(iii) Investment
(iv) Return
Case-based questions (4 marks)
A man invests in shares of nominal value each, buying them at a market value of . The company pays an annual dividend of .
(i) Find the number of shares he buys.
(ii) Find his annual dividend.
(iii) Find his percentage return.
(iv) If the market value later rises to and he sells all the shares, find his profit.
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(i) Number of shares
(ii) Dividend
(iii) Return
(iv) Sale proceeds ; profit
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