Mathematics Project (2024-2025)

i. What are Shares? Why do company issue shares?

Ans. A share is a unit of ownership in a company's capital stock, and is also
known as a stock. Companies issue shares to investors and traders to raise capital
for research and development, expansion, and other growth opportunities.
The main motto of companies behind share issuance is to raise capital. Companies
need money for their operations and expansion and equity shares help them with
the same.
On the other hand, the investor who buys these shares gets part ownership in the
company. In case of equity shares the investor also enjoys a voting right in the
company. The other for which they issue shares are as follows
Improving liquidity: An organization may issue shares to raise capital to improve
liquidity. This will allow them to meet their short-term financial obligations and
take advantage of business opportunities.
Diversifying Ownership: Companies may issue shares to raise capital and diversify
ownership. This allows new investors to become shareholders and can bring new
perspectives and ideas to the company.
ii. Explain the terms related to shares – Nominal value, Market value,
Dividend, at par, above par and below par.
Ans. Nominal Value: Nominal value is a financial term that refers to the current
price of something, without considering inflation or other factors. In the context of
shares, the nominal value is the initial value assigned to each share by the company
at the time of issuance. This value is often quite low, such as $1 per share, and it's
primarily used for accounting and legal purposes rather than reflecting the true
market value of the share.
Market Value: Market value is the price of an asset or company on the financial
market. It's based on what buyers are willing to pay and what sellers are willing to
accept. For publicly traded companies, market value is the market capitalization.
This is calculated by multiplying the number of outstanding shares by the current
market price.
Dividend: Dividend is a reward given to shareholders for their investment in a
company's equity. It is usually paid from the company's net profits and can be in
the form of cash, cash equivalents, shares, or assets. Dividends are often paid
quarterly when a company has a revenue surplus.
At par: In the share market, at par means that a stock is trading at its nominal value
or face value
Above par: In the share market, above par means that a stock is selling more than
its nominal value or face value
Below par: In the share market, above par means that a stock is selling less than its
nominal value or face value

iii. Give a brief description of BSE, NSE, Sensex, Nifty and also their role in
the share market.

Ans. BSE stands for Bombay Stock Exchange, which is an Indian stock exchange
that allows investors to trade in stocks, mutual funds, commodities, derivatives,
and equities. BSE also provides services like clearing, settlement, and risk
management. BSE is one of the oldest stock exchanges in Asia and was established
in 1875 as the "Native Share and Stock Brokers' Association". BSE is the first and
one of the largest securities markets based out of Mumbai in India.
NSE stands for The National Stock Exchange of India Limited is the country’s
leading financial exchange, with headquarters in Mumbai. It was incorporated in
1992 and, since then, has evolved into an advanced, automated, electronic system
offering trading facilities to investors across the country. of Mumbai in India.
Sensex is the benchmark index of the BSE in India. It was launched on January 1,
1986 as a basket of 30 stocks representing the country's largest, financially-sound
companies listed on the BSE. The bellwether index reflects the sentiment of the
market and serves as a benchmark for fund managers to compare the performance
of their funds. For investors, Sensex acts as a proxy for the Indian stock markets.
Nifty: NIFTY 50 is a benchmark index that tracks the performance of the top 50
largest and most liquid stocks traded on the National Stock Exchange (NSE) of
India. The index is a weighted average of the 50 companies, and is used to gauge
the overall performance of the Indian stock market. The term "NIFTY" is a
combination of "National Stock Exchange" and "Fifty".
 iv. Compare: Saving in a bank vs Investing in Shares

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Analysis of two companies(This is a title given by me)
MRF(Madras Rubber Factory) Last Ten Days
Date Market Value Face Value Highest Value Lowest Value
Zomato Last Ten Days
Date Market Value Face Value Highest Value Lowest Value

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