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

An investor buys 200 shares at ₹500 and sells them the same day, on a stock exchange, at ₹510. Ignoring all charges, which statement correctly describes the transaction?

Buying and selling the same shares on the same day is an intraday square-off, and only the net difference is settled with no delivery. The gain is ₹10 per share times 200 shares, which equals ₹2,000, before charges.

  1. AIt is an intraday transaction with a gain of ₹2,000, which is settled on a net basis without deliveryCorrect
  2. BIt is a delivery-based transaction with a gain of ₹10,000
  3. CIt is an intraday transaction with a gain of ₹1,000
  4. DIt is an intraday transaction with a gain of ₹20,000

Explanation

Gain per share is 510 - 500 = ₹10, so for 200 shares gain is 200 x 10 = ₹2,000. Buying and selling on the same day squares off the position, so only the net difference is settled and no delivery takes place. ₹1,000 uses 100 shares, ₹10,000 uses 1,000 shares, and ₹20,000 uses 2,000 shares.

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