{"id":162955,"date":"2024-02-23T14:24:43","date_gmt":"2024-02-23T08:54:43","guid":{"rendered":"https:\/\/www.gkseries.com\/blog\/?p=162955"},"modified":"2024-02-23T14:24:45","modified_gmt":"2024-02-23T08:54:45","slug":"the-following-chart-shows-the-price-of-shares-of-company-a-on-five-trading-days-during-an-active-trading-session","status":"publish","type":"post","link":"https:\/\/www.gkseries.com\/blog\/the-following-chart-shows-the-price-of-shares-of-company-a-on-five-trading-days-during-an-active-trading-session\/","title":{"rendered":"The following chart shows the price of shares of company A on five trading days during an active trading session"},"content":{"rendered":"\n

Direction: Read the following information carefully and answer the questions based on it.<\/p>\n\n\n\n

The following chart shows the price of shares of company A on five trading days during an active trading session. The ceiling and floor of the line depicts the maximum and minimum prices respectively of a share throughout the day. The ceiling and floor of the box depicts opening price and closing price respectively for black box and the opposite in case of white box.<\/p>\n\n\n\n

There are some other charges on buying and selling as per:<\/p>\n\n\n\n

\u2022 Brokerage Charge on buying- 0.60%(max Rs 50) uptoRs 10000, 0.30% (max Rs 125) above Rs 10000 and uptoRs 50000 and 0.15%(max Rs 500) above Rs 50000.<\/p>\n\n\n\n

\u2022 Brokerage Charge on selling- 0.80% (max Rs 300) uptoRs 50000 and 0.60% (max Rs 2000) above Rs 50000.<\/p>\n\n\n\n

\u2022 Stamp Duty- .015% flat on buying only<\/p>\n\n\n\n

\u2022 Securities Transaction Tax(STT)- 0.1% flat on both side<\/p>\n\n\n\n

GST @18% is levied extra on brokerage charges for each transactions<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

1) Prakash bought 50000 shares of company A at Rs 2 more than that day\u2019s low on 30-04-2019 and sold them on 03.05.2019 at Rs 3 less than that day\u2019s high. What is the profit or loss percentage of Prakash on the selling of shares?<\/p>\n\n\n\n

A.            66.80%<\/strong><\/p>\n\n\n\n

B.            67.30%<\/p>\n\n\n\n

C.            64.50%<\/p>\n\n\n\n

D.            61.21%<\/p>\n\n\n\n

E.            None of these<\/p>\n\n\n\n

Sol:<\/p>\n\n\n\n

Day\u2019s low on 30thapril=Rs 53<\/p>\n\n\n\n

=> Buying price of Prakash=53+2= Rs 55<\/p>\n\n\n\n

Cost price of 50000 shares=55*50000=Rs<\/p>\n\n\n\n

2750000<\/p>\n\n\n\n

Brokerage cost is 0.15% or Rs 500 whichever is<\/p>\n\n\n\n

lower for the corresponding slab.<\/p>\n\n\n\n

Brokerage cost at 0.15%=0.15\/100*2750000=<\/p>\n\n\n\n

Rs 4125<\/p>\n\n\n\n

So actual brokerage cost=Rs 500. With<\/p>\n\n\n\n

GST @18%, brokerage cost=1.18*500=Rs<\/p>\n\n\n\n

590<\/p>\n\n\n\n

Stamp duty=0.015% and STT=0.1%<\/p>\n\n\n\n

Total overhead cost=Rs<\/p>\n\n\n\n

590+0.115%*2750000=Rs 590+ Rs 3162.50=Rs<\/p>\n\n\n\n

3752.50<\/p>\n\n\n\n

Total CP for Prakash with overhead<\/p>\n\n\n\n

cost=2750000+3752.50=Rs 2753752.50<\/p>\n\n\n\n

Day\u2019s high on 3rd May, 2021=Rs 95<\/p>\n\n\n\n

=> Selling price of Prakash=Rs 92<\/p>\n\n\n\n

Money from selling 50000 shares=92*50000=Rs<\/p>\n\n\n\n

4600000<\/p>\n\n\n\n

Brokerage on selling is @0.60% or Rs 2000<\/p>\n\n\n\n

whichever is lower.<\/p>\n\n\n\n

Brokerage @0.60%=0.60\/100*4600000= Rs<\/p>\n\n\n\n

27600. Thus, brokerage cost would be Rs<\/p>\n\n\n\n

2000<\/p>\n\n\n\n

STT on selling=0.1\/100*4600000= Rs 4600<\/p>\n\n\n\n

Total money with Prakash after deduction of<\/p>\n\n\n\n

brokerage and STT=Rs 4600000-Rs 4600-<\/p>\n\n\n\n

Rs 2000=Rs 4593400<\/p>\n\n\n\n

So, Prakash shall be in profit. Total profit= Rs<\/p>\n\n\n\n

4593400-Rs 2753752.50=Rs 1839647.50<\/p>\n\n\n\n

Profit percentage =1839647.50\/2753752.50*100<\/p>\n\n\n\n

=66.80 %<\/p>\n\n\n\n

2) Someone bought 200 shares on 30th April, 100 shares on 2nd May and 250 shares on 4th May at the opening price. What is the average cost per share considering all the charges?<\/p>\n\n\n\n

A.            Rs 73.09<\/p>\n\n\n\n

B.            Rs 73.43<\/strong><\/p>\n\n\n\n

C.            Rs 74.15<\/p>\n\n\n\n

D.            Rs 72.85<\/p>\n\n\n\n

E.            None of these<\/p>\n\n\n\n

Sol:<\/p>\n\n\n\n

Buying price=Rs 64. Total cost of buying=Rs<\/p>\n\n\n\n

64*200=Rs 12800. Brokerage cost<\/p>\n\n\n\n

@0.30%=0.30\/100*12800=Rs 38.40<\/p>\n\n\n\n

STT=0.1\/100*12800=Rs 12.8<\/p>\n\n\n\n

Stamp Duty=0.015\/100*12800=Rs 1.92<\/p>\n\n\n\n

Total cost including overhead<\/p>\n\n\n\n

costs=Rs.12800+Rs.38.40+Rs.12.8+Rs.1.9<\/p>\n\n\n\n

2=Rs 12853.12<\/p>\n\n\n\n

On 2nd May,<\/p>\n\n\n\n

Buying Price=Rs 69. Total cost of buying=Rs<\/p>\n\n\n\n

69*100=Rs 6900<\/p>\n\n\n\n

Brokerage cost @0.60%=Rs 41.4<\/p>\n\n\n\n

STT and Stamp duty=0.115*6900=Rs 7.935<\/p>\n\n\n\n

Total cost including overhead<\/p>\n\n\n\n

costs=Rs.6900+Rs.41.4+Rs.7.935=Rs.6949.335<\/p>\n\n\n\n

On 4th May,<\/p>\n\n\n\n

Buying Price=Rs 82. Total cost of buying= Rs<\/p>\n\n\n\n

82*250=Rs 20500<\/p>\n\n\n\n

Brokerage cost at 0.30% =0.30\/100*20500=Rs<\/p>\n\n\n\n

61.50<\/p>\n\n\n\n

STT and Stamp<\/p>\n\n\n\n

duty=0.115\/100*20500=Rs.23.575<\/p>\n\n\n\n

Total cost including overhead costs<\/p>\n\n\n\n

=Rs.20500+Rs.61.50+Rs.23.575 =Rs.20585.075<\/p>\n\n\n\n

Total cost of all<\/p>\n\n\n\n

shares=Rs.12853.12+Rs.6949.335+Rs.20585.0<\/p>\n\n\n\n

75=Rs 40387.53<\/p>\n\n\n\n

Total shares owned=200+100+250=550<\/p>\n\n\n\n

=> Average price per share=40387.53\/550=Rs<\/p>\n\n\n\n

73.43<\/p>\n\n\n\n

3) What is the 5-day simple moving average of the share on the basis of the average of opening and closing price on these five days?<\/p>\n\n\n\n

A. 85.8<\/p>\n\n\n\n

B. 78.2<\/strong><\/p>\n\n\n\n

C. 79.4<\/p>\n\n\n\n

D. 74.5<\/p>\n\n\n\n

E. None of these<\/p>\n\n\n\n

On the basis of average of opening and closing<\/p>\n\n\n\n

price of the share,<\/p>\n\n\n\n

Price on 30.04.2019= (64+60)\/2=62<\/p>\n\n\n\n

Price on 02.05.2019= (69+80)\/2=74.5<\/p>\n\n\n\n

Price on 03.05.2019= (80+90)\/2=85<\/p>\n\n\n\n

Price on 04.05.2019= (82+72)\/2=77<\/p>\n\n\n\n

Price on 05.05.2019= (90+95)\/2=92.5<\/p>\n\n\n\n

=> Simple moving average of the share =<\/p>\n\n\n\n

(62+74.5+85+77+92.5)\/5 =391\/5 =78.2<\/p>\n\n\n\n

4) Aakash bought 2000 shares on<\/p>\n\n\n\n

02.05.2019 and sold them on 04.05.2019 both at opening price. If Aakash plans to buy the shares again on 05.05.2019 at day\u2019s low, how many shares he could buy with the profit he gets by selling shares on 04.05.2019?<\/p>\n\n\n\n

A.302<\/strong><\/p>\n\n\n\n

B. 303<\/p>\n\n\n\n

C. 300<\/p>\n\n\n\n

D. 301<\/p>\n\n\n\n

E. 212<\/p>\n\n\n\n

Sol:<\/p>\n\n\n\n

On 02.05.2019, opening price=Rs 69<\/p>\n\n\n\n

Cost of 2000 shares=2000*69=Rs 1,38,000<\/p>\n\n\n\n

Brokerage @0.15%=Rs 207<\/p>\n\n\n\n

STT+Stamp duty@ (0.1+0.015) i.e.,<\/p>\n\n\n\n

@0.115%=Rs 158.70<\/p>\n\n\n\n

Total cost price for Aakash=Rs 1,38,365.70<\/p>\n\n\n\n

On 04.05.2019, opening price=Rs 82<\/p>\n\n\n\n

Money from sale of 2000 shares=Rs 164000<\/p>\n\n\n\n

Brokerage @0.60%=Rs 984<\/p>\n\n\n\n

STT @0.1% =Rs 164<\/p>\n\n\n\n

Total money from sales of shares=Rs 164000-<\/p>\n\n\n\n

Rs 984- Rs 164=Rs 162852<\/p>\n\n\n\n

Thus, profit of Aakash=Rs 162852-Rs<\/p>\n\n\n\n

138365.70=Rs 24322.30<\/p>\n\n\n\n

Now, day\u2019s low on 05.05.2019=Rs 80<\/p>\n\n\n\n

If Aakash buys 303 shares, cost=303*80=Rs<\/p>\n\n\n\n

24240<\/p>\n\n\n\n

Brokerage@0.30%=Rs 72.72<\/p>\n\n\n\n

STT+Stamp Duty @0.115%=Rs 27.876<\/p>\n\n\n\n

Total cost=Rs 24240+Rs 72.72+Rs 27.876=<\/p>\n\n\n\n

Rs 24340.596 which is higher than profit Rs<\/p>\n\n\n\n

24322.30<\/p>\n\n\n\n

So Aakash must buy 302 shares.<\/p>\n\n\n\n

5) Some shares were bought on 2nd May at the opening price and were sold on day\u2019s high on the same day. How many shares must be traded on an intraday basis to get a profit of a minimum of Rs.5000?<\/p>\n\n\n\n

A.            385<\/p>\n\n\n\n

B.            398<\/p>\n\n\n\n

C.            391<\/p>\n\n\n\n

D.            Can\u2019t be determined<\/p>\n\n\n\n

E.            None of these<\/strong><\/p>\n\n\n\n

Sol:<\/p>\n\n\n\n

On 2nd<\/sup> may<\/p>\n\n\n\n

Opening price =Rs 69<\/p>\n\n\n\n

Day\u2019s high=Rs 82<\/p>\n\n\n\n

Excluding taxes and brokerage, profit in one<\/p>\n\n\n\n

share=Rs 13<\/p>\n\n\n\n

For 385 shares,<\/p>\n\n\n\n

Buying cost=Rs 69*385=Rs 26565<\/p>\n\n\n\n

Brokerage @0.30 %( as total buying is<\/p>\n\n\n\n

between Rs 10000 and Rs 50000)<\/p>\n\n\n\n

=0.30\/100*385*69=Rs 79.695<\/p>\n\n\n\n

STT & STAMP<\/p>\n\n\n\n

DUTY@0.115%=0.115\/100*26565=Rs 30.55<\/p>\n\n\n\n

Selling cost=Rs 82*385=Rs 31570<\/p>\n\n\n\n

Brokerage@0.80 %=Rs 252.56<\/p>\n\n\n\n

STT @0.1%=Rs 31.57<\/p>\n\n\n\n

Net profit=31570-26565-79.695-30.55-<\/p>\n\n\n\n

252.56-31.57= Rs 4610.625 which is<\/p>\n\n\n\n

short of target Rs 5000 by Rs 389.375.<\/p>\n\n\n\n

For 398 shares,<\/p>\n\n\n\n

Buying cost=Rs 69*398=Rs 27462<\/p>\n\n\n\n

Brokerage @0.30 %( as total buying is<\/p>\n\n\n\n

between Rs 10000 and Rs 50000) =Rs<\/p>\n\n\n\n

82.386<\/p>\n\n\n\n

STT & STAMP DUTY@0.115%=Rs 31.58<\/p>\n\n\n\n

Selling cost=Rs 82*398=Rs 32636<\/p>\n\n\n\n

Brokerage@0.80 %=Rs 261<\/p>\n\n\n\n

STT @0.1%=Rs 32.64<\/p>\n\n\n\n

Net profit=32636-27462-82.386-31.58-261-<\/p>\n\n\n\n

32.64=Rs 4766.39 which is again less than<\/p>\n\n\n\n

Rs 5000<\/p>\n\n\n\n

Since 398 shares don\u2019t fulfil the profit<\/p>\n\n\n\n

requirement, 391 shares will also not fulfil the<\/p>\n\n\n\n

requirement.<\/p>\n\n\n\n

Thus, none of the option gives Rs 5000 profit.<\/p>\n","protected":false},"excerpt":{"rendered":"

Direction: Read the following information carefully and answer the questions based on it. The following chart shows the price of shares of company A on five trading days during an active trading session. The ceiling and floor of the line depicts the maximum and minimum prices respectively of a share throughout the day. The ceiling […]<\/p>\n","protected":false},"author":419,"featured_media":162958,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[5138],"tags":[5139],"class_list":["post-162955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-quantitative-aptitude","tag-quantitative-aptitude"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/162955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/419"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=162955"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/162955\/revisions"}],"predecessor-version":[{"id":162959,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/162955\/revisions\/162959"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/162958"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=162955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=162955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=162955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}