Question

An investor purchased 800 shares of stock for $63.25 per share and sold them later for...

An investor purchased 800 shares of stock for $63.25 per share and sold them later for $65.28 per share. The broker’s commission was 2% of the purchase price and 2% of the selling price. Find the amount the investor made or lost on the stock. Use a negative number to indicate a loss.

The investor made/lost ?

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Answer #1

Purchase Price = 800* 63.25 = 50,600

Selling Price = 800 * 65.28 = 52,224

Commisssion on Purcahse = 50,600 * 0.02 = 1012

Commisssion on Sale = 52,224 * 0.02 = 1044.48

Total Commission = 1012 + 1044.48 = 2056.48

Profit made = Selling Value - Purchase - Commission

= 52224 - 50600 - 2056.48

= -432.48 LOSS

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