In September 2016 you purchased a 125 shares of Grainger stock for $224.84. It is now September 2019 and Grainger stock is currently priced at $295.56. If you were to sell today at this price, what would be your capital gain (loss) on the sale, ignoring commissions

Gain in capital = $ 70.72

Explanation:

Given:

- The price of stocks when purchased P_o = $ 224.84

- The price of stocks when sold P_s = $ 295.56

Find:

what would be your capital gain (loss) on the sale, ignoring commissions

Solution:

- The capital gain or loss on the selling of stocks stems from the difference of buying and selling value of stocks. The original price of stock was P_o and the selling price would be P_s. The difference would be:

capital gain = P_s - P_o

capital gain = $295.56 - $224.84

capital gain = $ 70.72

- Hence, there would be a gain in capital if sold today for about $ 70.72.