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 ?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

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

NOTE: The answer to your question has been given below/above. If there is any query regarding the answer, please ask in the comment section. If you find the answer helpful, do upvote. Help us help you.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An investor purchased 400 shares of a company at $30 per share. The stock was bought...
An investor purchased 400 shares of a company at $30 per share. The stock was bought on 65 percent margin (35 percent of the purchase amount was borrowed). One month later, the investor had to pay interest on the amount borrowed at a rate of 3 percent per month. At that time, the investor received a dividend of $0.50 per share. Immediately after receiving the dividend, he sold the shares at $35 per share. The investor paid total commissions of...
An investor purchased 400 shares of a company at $30 per share. The stock was bought...
An investor purchased 400 shares of a company at $30 per share. The stock was bought on 65 percent margin (35 percent of the purchase amount was borrowed). One month later, the investor had to pay interest on the amount borrowed at a rate of 3 percent per month. At that time, the investor received a dividend of $0.50 per share. Immediately after receiving the dividend, he sold the shares at $35 per share. The investor paid total commissions of...
An investor purchased 300 shares of a company at $25 per share. The stock was bought...
An investor purchased 300 shares of a company at $25 per share. The stock was bought on 70 percent margin (30 percent of the purchase amount was borrowed). One month later, the investor had to pay interest on the amount borrowed at a rate of 3 percent per month. At that time, the investor received a dividend of $0.6 per share. Immediately after receiving the dividend, he sold the shares at $38 per share. The investor paid total commissions of...
An investor purchased 200 shares of XYZ stock at $25 per share, plus a $300 brokerage...
An investor purchased 200 shares of XYZ stock at $25 per share, plus a $300 brokerage commission. He then sold 100 shares of the XYZ stock at $35 per share, paying a $200 commission on the sale. He will record a A) $1,000 gain on the sale of the investment. B) $500 gain on the sale of the investment. C) $650 gain on the sale of the investment. D) $850 gain on the sale of the investment.
5000 shares of stock were purchased at $25 per share with a 5% broker commission. The...
5000 shares of stock were purchased at $25 per share with a 5% broker commission. The following year they were sold for $28 per share with a 3% broker commission. What was the profit on this investment? You pay the commission both when buying and selling.  Commission is added to the buying cost and subtracted from the selling amount. Total Cost of Investment? Total Amount Received upon Sale? Actual Profit on the Investment?
1. Louis purchased 300 shares of stock on margin for $22.15 a share and sold the...
1. Louis purchased 300 shares of stock on margin for $22.15 a share and sold the shares eleven months later for $24.50 a share. The initial margin requirement was 75 percent and the maintenance margin was 30 percent. The interest rate on the margin loan was 8.5 percent. He received no dividend income. What was his holding period return? Multiple Choice 8.45 percent 9.88 percent 10.76 percent 7.05 percent 11.56 percent 2.   You purchased six put option contracts with a...
In 2019, Southwestern Corporation reacquired shares of its common stock and later sold shares in two...
In 2019, Southwestern Corporation reacquired shares of its common stock and later sold shares in two separate transactions. Southwestern had the following account balances at December 31, 2018:    Stockholders’ Equity                                                                      Common stock, 100,000 shares at $1 par, .............. $   100,000 Paid-in capital – excess of par..................................      900,000 Retained earnings....................................................      500,000 Required: On the following page, prepare the entries for both the purchase and subsequent resale of shares, treated as retired stock for the following entries:                ...
A company (the investor) purchased 40,000 shares of common stock of the investee for $40 per...
A company (the investor) purchased 40,000 shares of common stock of the investee for $40 per share on January 2, 2020. The investee had 100,000 shares of common stock outstanding during 2021, paid cash dividends of $62,000 during 2021, and reported net income of $330,000 for 2021. The investor company should report revenue from investment for 2021 in the amount of....
Mr. Dow bought 100 shares of stock at $19 per share. Three years later, he sold...
Mr. Dow bought 100 shares of stock at $19 per share. Three years later, he sold the stock for $25 per share. What is his annual rate of return? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
You sold short 400 shares of a stock for $60 per share. Your broker’s initial margin...
You sold short 400 shares of a stock for $60 per share. Your broker’s initial margin requirement is 60%. The broker’s maintenance margin requirement is 35%. You initially want to put up as little capital (money) as possible to support the short sale. A.) How much capital must you have in your account before you can make the short sale? B.) If the stock price goes to $70 per share, will you receive a margin call? Show your work to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT