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Richard placed an order for 1,000 shares in each of three IPOs at $28 a share....

Richard placed an order for 1,000 shares in each of three IPOs at $28 a share. He was allocated 1,000 shares of IPO A, 200 shares of IPO B, and 600 shares of IPO C. On the first day of trading, IPO A opened at $28 a share and ended the day at $24.25 a share. IPO B opened at $30 a share and finished the day at $37 a share. IPO C opened at $28 a share and ended the day at $27.65 a share. What is the total profit or loss on these three IPO purchases as of the end of the first day of trading?

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Answer #1
IPO A IPO B IPO C
Number of shares ordered A 1000 1000 1000
Alloted shares B 1000 200 600
Share purchase price C 28 28 28
IPO Openning price D 28 30 28
Ending price E 24.25 37 27.65
Profit/ (Loss) per share F = (E-C) -3.75 9 -0.35
Profit/ (Loss) D -3750 1800 -210
The total profit or loss on these three IPO purchases as of the end of the first day of trading
= -3750+1800-210 = -2160
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