You purchase 115 shares of common stock at $62.32 per share. A few months later, you sell the shares for $85.32. No dividends were paid. Your stockbroker charges 3.8% commission on transactions of less than 150 shares. Determine the gain (or loss) of the stock transaction. Round your answer to the nearest cent.

a.

A gain of $2,272.15

b.

A loss of $2,272.15

c.

A gain of $1,999.81

d.

A loss of $1,999.81

Question

Mathematics

Guerra

15 August, 22:29

You purchase 115 shares of common stock at $62.32 per share. A few months later, you sell the shares for $85.32. No dividends were paid. Your stockbroker charges 3.8% commission on transactions of less than 150 shares. Determine the gain (or loss) of the stock transaction. Round your answer to the nearest cent.

a.

A gain of $2,272.15

b.

A loss of $2,272.15

c.

A gain of $1,999.81

d.

A loss of $1,999.81

+3

Answers (1)

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Ralph · Answer 1

Cost of shares = 1.038 x 115 x 62.32 = $7,439.14

Revenue from sell of stock = (1 - 0.038) x 115 x 85.32 = $9,438.95

Gain = $9,438.95 - $7,439.14 = $1,999.81