NISM Certifications · NISM-Series-XV: Research Analyst · Terminology in Equity and Debt Markets
A company's stock closed at Rs 500 and its 52-week high is Rs 625. The stock is trading at what percentage below its 52-week high?
The stock is 20% below its 52-week high. The decline is Rs 125 (625 minus 500), and measuring it against the high of Rs 625 gives 20%. Using the current price of Rs 500 as the base would wrongly give 25%.
- A25%
- B20%Correct
- C12.5%
- D80%
Explanation
The fall from the high is 625 - 500 = 125. Dividing by the high (the correct base): 125/625 = 20%. Using the current price as the base gives 25%, which is the wrong base.
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