Question

Rita placed an order for 300 shares of each of four separate IPOs (Orders A, B, C, and D) with an offer price of $16 each. She received 100 shares of Order B, 200 shares of Order D, and 300 shares of the other orders. At the end of the first day, Order A was overpriced by $2 a share, Order B was underpriced by $4 a share, Order C was correctly priced, and Order D was overpriced by $1 a share. What was combined total profit or loss for the first day on these four orders?

Answer 1

Order	No. of shares	Profit/ (loss) per share	Net profit/ (loss)
A	300	$          (2)	$      (600)
B	100	$            4	$        400
C	300	$          -	$           -
D	200	$          (1)	$      (200)
Net profit/ (loss)			$      (400)

Net loss for first day is $400.