A person invests Rs.4368 and buys certain hundred rupees shares at RS.91. He sells out shares wirth RS.2400 when they have risen to RS.95 and the remaining when they have fallen to RS.85. Find the gain or lose on the total transactions.

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Solution

Sum Invested by the Man = Rs. 4368
Nominal Value of 1 Share = Rs. 100
Market Value of 1 Share = Rs. 91

∵ No. of Shares = Investment/M.V. of 1 Share.
= 4368/91
= 48 shares.

∴ The Original Number of Shares which the Man have is 48.

Now,
In First Case,
New Market Value of 1 Share = Rs. 95.
When Market Price is Rs., 95 Man Sold 24 Shares.

∴ Sum Invested by the Man to sell 24 Shares = 24 × New M.V. of 1 Share.
= 24 × 95
= Rs. 2280.

In Second Case,

Number of Shares left = 48 - 24
= 24 Shares.
Man sold these Shares when there price fall to Rs. 85 Per Shares.
∴ Market Price of One share = Rs. 85.

∴ Investment = Number of Shares × Market Value of 1 Shares.
= 24 × 85
= Rs. 2040

Total money gained by the main in selling these Shares = 2,280 + 2,040
= Rs. 4,320

Now, We can see that Money gained by the Man in selling the Shares is less than the Money Invested by the Man in buying the Shares.
∴ There is a loss.

Loss = Total Investment in Buying the Shares - Total Money Gained by the Man in selling the Shares.
= 4368 - 4320
= Rs. 48.

∴ Loss suffered by the Man during the Whole Transactions is Rs. 48.

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