Kim placed an order with her broker for 750 shares of each of three IPOs being offered this week. Each of the IPOs has an offer price of $24. The number of shares allocated to Kim along with the closing prices on the first trading day are: Stock Shares Allocated Price A 750 $ 23.15 B 370 27.43 C 260 29.87. What is Kim's total profit on these three stocks at the end of the first day of trading?

Kim's total profits on the three stocks at the end of the first day of trading is $2157.80

Explanation:

The closing day valuation of stocks needs to be compared with the prices at the IPOs opened that same day to ascertain whether or not a profit has been made.

The purchase price of IPOs = (750+370+260) * $24

=$33,120.00

Closing day valuation = ($23.15*750+$27.43*370+$29.87*260)

=$35,277.8 0

The total profit on the day's transactions=$35,277.8 0-$33,120.00

=$2157.8

The total profits on the three stocks on first day is $2157.8 0