|
Part 3:
|
Applications in Social Arithmetic |
| Stocks and Shares When you buy shares in a company you can make money in two ways: you can sell the shares at a higher price than you paid, though you will have to pay commission to the stockbroker (not included in these examples) at the end of each year the shares will yield a dividend, the size of which will depend on how well the company has performed during the year. In both cases you have to pay income tax on your profit, but we will ignore that for now. Example 3.6 You buy 250 shares for 286p each. Each share yields a dividend of 43p. You then sell all the shares for 364p each. Calculate your total profit (before tax) and express this as a percentage of your original outlay. |
