 Hello and welcome to the session. In this session we will discuss about shares and dividends. First let's discuss the definition of shares. A joint stock company divides its capital into parts called shares. Then we have shareholders, persons who purchase the shares are called shareholders. When a business is to be started, a large sum of money is required for that and that total sum of money is divided into equal parts which are called the shares and these shares are sold among persons called the shareholders. Next definition that we have is of capital stock. The total amount invested to start a company is called the capital stock. Then we have the shares purchased by an individual is also called the persons who purchases the shares are also called stockholders. Now next we have the kinds of shares. First we have the common or you can say equity shares. The second type of shares are the preferred shares. The profit that a company gains is distributed among the shareholders and the preferred shareholders that is the shareholders who possess the preferred shares They have a first claim on the dividend to they have been paid. The remaining profit is distributed among the common shareholders that is the persons who possess the common shares or the equity shares. Next definition that we have is the face value. The original value of a share at which the company sells that share to its investors and also this value is printed on the share certificate is called the face value or the power value or nominal value or we can also call it the printed value of the share. Next we have the market value the price at which the share is bought or sold in the market is called the market value or the cash value of the share. Now if the market value of the share is more than the face value of the share then in that case we say that the share is above par and if the market value of the share is same as its face value then the share is said to be at par and if the market value of the share is less than the face value of the share then in that case the share is said to be below par or is at discount Next we have the definition of dividend the part of the company's annual profit which a shareholder for his investment is called the dividend. Dividend is always calculated on the face value of a share. Next we have some formulae. First the money invested would be given by the number of shares multiplied by the market value of one share. The next we have the annual income is equal to the number of shares multiplied by the face value of one share multiplied by the rate of dividend. And we define the rate of dividend as the percentage of the face value of a share to annum. Next formula that we have is of dividend yield or the return this is equal to the annual income upon the investment multiplied by 100. Also the number of shares purchased are given by the investment upon the market value of one share also number of shares purchased could be found out by the formula annual income upon the income on one share. Consider an example in which a man invests $160 buying shares of $30 each and selling 10% premium and the dividend on the share is 12%. We need to calculate the number of shares he buys and also the dividend he receives annually. In this we are given the face value of each share $30 then the premium is given as 10% minus 3%. So now we can find out the market value of each share $30 plus $30. Now from here we have $33 as the market value of each share. Now the total investment done by the man is given as $660 so investment is equal to $660. So we can easily find out the number of shares bought and this would be equal to the investment upon the market value of one share. So this is equal to $660 upon $33. Now $33 20 times $660 so number of shares bought is 20. Now the dividend received would be same as the annual income that is number of shares into face value of one share into rate of dividend. So we can say that the dividend received is equal to the number of shares that is 20 multiplied by the face value of each share which is 30 multiplied by rate of dividend which is given as 12% so here we have 12 upon 100. So this much dollars is the dividend received and so this is equal to $72 is the dividend received. So this completes the session where we have understood the concept of shares and dividends.