You purchase 65 shares of common stock at $32.50 per share. A few months later, you sell the shares for $39.95. No dividends

were paid. Your stockbroker charges 3.1% commission on transactions of less than 100 shares. Determine the gain (or loss) of

the stock transaction. Round your answer to the nearest cent.

a. Again of $338.26

c. Again of $418.76

b. Aloss of $403.75

d. A loss

Question

Mathematics

Gael Camacho

5 June, 14:59

You purchase 65 shares of common stock at $32.50 per share. A few months later, you sell the shares for $39.95. No dividends

were paid. Your stockbroker charges 3.1% commission on transactions of less than 100 shares. Determine the gain (or loss) of

the stock transaction. Round your answer to the nearest cent.

a. Again of $338.26

c. Again of $418.76

b. Aloss of $403.75

d. A loss

+1

Answers (1)

Know the Answer?

Ismael Molina · Answer 1

A) A gain of $338.26

Step-by-step explanation:

purchase price = (total number of shares x purchase price) + (broker fees)

purchase price = (65 x $32.50) + (3.1%) = $2,122.50 + 3.1% ($2,122.50) = $2,177.99

sales price = (total number of shares x sales price) - (broker fees)

purchase price = (65 x $39.95) + (3.1%) = $2,596.75 - 3.1% ($2,596.75) = $2,516.25

gain/loss = sales price - purchase price = $2,516.25 - $2,177.99 = $338.26 gain