3. Wanda bought a share in Tasty Ice Cream for $25 on March 1. On June 13, Tasty Ice Cream's shares were trading

for $23.50. What happens if she sells her share on June 13?

a. Wanda will make $1.50 by selling her share.

b. Wanda will receive her full $25 purchase price back, but she won't make any profit.

C. Wanda cannot sell her share on June 13; she must wait for the price to go above $25 in order to sell.

d. Wanda will receive $23.50 for her share, meaning she lost $1.50 on the investment

Question

Mathematics

Terrance Mullins

5 March, 19:57

3. Wanda bought a share in Tasty Ice Cream for $25 on March 1. On June 13, Tasty Ice Cream's shares were trading

for $23.50. What happens if she sells her share on June 13?

a. Wanda will make $1.50 by selling her share.

b. Wanda will receive her full $25 purchase price back, but she won't make any profit.

C. Wanda cannot sell her share on June 13; she must wait for the price to go above $25 in order to sell.

d. Wanda will receive $23.50 for her share, meaning she lost $1.50 on the investment

+3

Answers (1)

Know the Answer?

Brittany Cuevas · Answer 1

D) Wanda will receive $23.50 for her share, meaning she lost $1.50 on the investment.

Step-by-step explanation:

Identify what you know:

1) Wanda bought a single share in Tasty Ice Cream for $25.00 on March 1st.

2) Tasty Ice Cream's stock price dropped to $23.50 (-1.50).

When investing in the stock market, you are always attempting to make a profit. So, you buy a stock when it's "low," and buy it when the prices go up. In reality, Wanda shouldn't sell her share yet, because she will lose $1.50. However, there is nothing stopping her, if she wanted to. Since the share is worth $23.50, Wanda will make $23.50 if she sells her share on June 13th.