If you bought 600 shares of stock for $41 per share, paid 1% commission, and then sold them 6 months later for $41.75 per share, with a $30 flat fee, are your net proceeds positive or negative? Explain.

Question

Mathematics

Haley Leach

29 May, 15:06

If you bought 600 shares of stock for $41 per share, paid 1% commission, and then sold them 6 months later for $41.75 per share, with a $30 flat fee, are your net proceeds positive or negative? Explain.

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Answers (1)

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Sassafras · Answer 1

Total value of stocks purchased = 600*41 = $24,600

The commission paid = 1% = 0.01 * 24,600 = $246

Total purchase cost = $24,600 + $246 = $24,846

Sale price = $41.75

Total sale proceeds = 41.75*600 = $25,050

There is a flat commission of $30 on the sale

Total sale proceeds after commission = $25,050 - $30 = $25,020

Net proceeds = Total sales vale - total purchase cost

Net proceeds = 25,020 - 24,846 = $204 (profit)

Since we have a profit, the answer is sale proceeds are positive