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NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Securities Market

An investor buys 200 shares at ₹150 each, and the market price rises to ₹180 before a day-trading intraday sale. Ignoring all charges and taxes, what is the investor's gross percentage return on the purchase and the rupee profit respectively?

The gross return is 20% and the profit is ₹6,000. The gain per share is ₹30 on a cost of ₹150, which is 20%, and multiplying ₹30 by 200 shares gives ₹6,000. Using the selling price as the base would wrongly give 16.67%.

  1. A20% and ₹6,000Correct
  2. B16.67% and ₹6,000
  3. C20% and ₹30,000
  4. D30% and ₹6,000

Explanation

Profit per share is 180-150=₹30. For 200 shares, profit is ₹6,000. Percentage return is 30/150=20%. Dividing by the selling price gives 16.67%, which is the wrong base. ₹30,000 is the price difference multiplied by the wrong quantity, and 30% is incorrect arithmetic.

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