Shares

  In this lesson we're going to learn shares. Shares are issued by companies for raise the operating the fund.
Also in shares we're going to learn Dividends and yields. These will tell you how to find the profits, price as in the percentage of the shares.
            
                                        Dividend yield = Dividend/market value x 100  

 1. Our first example is " A company distributes all after their tax profit is $67.5 million. There are 1342 million shares in the company."

 What we need to do is find the price of each share. We see both are million so we erase 6 zeroes.
Therefore $67.5÷1342 = 0.050298053
= $0.05 (5 cents per share)

2. Second example is "Find the dividend yield if the shares have a current market value of $1.30.

  Dividend yield = 0.05/1.30 x 100
                        = 3.846153846
                        = 3.8%

3. Third example is "What's my dividend if i own 35000 shares?"
 35000 x 0.05 = $1750


Next one we're going to learn is the brokerage fees. Brokerage fees are charged on all share transaction account (I.e purchases and sales.)

 4. Forth example is "I bought a share to the value of $72000.
The broker charges 1.5% on the first $10000, 1.3% on the next $10000 and 1.1% on the next $10000 and 1.2% in excess of $13000.

 Then I sell my shares at $75000.

(A) Find the brokerage fees that I must pay for this purchase.
(B) Find the profits after the brokerage fees.


(A) (1.5% x 10000) + (1.1% x 10000) + (1.2% x 59000)
= $968

(B) (1.5% x 10000) + (1.1% x 10000) + (1.2% x 62000)
= $1004

Profit = ($75000 - $72000) - 968 - 1004
 = $1028