Mrs smith sold 200 shares of a stock for 5,975 dollars, when the price per share went down 3 bucks she bought 100 more shares, when the price per share went back up 5 bucks she sold 50 shares . How much did Mrs smith gain or lose in her transactions?????
To calculate Mrs. Smith's gain or loss in her transactions, we need to track the prices per share and the number of shares bought and sold.
Let's break down the given information step by step:
1. Mrs. Smith sold 200 shares of a stock for $5,975.
2. The price per share decreased by $3, so she bought 100 more shares.
3. The price per share then increased by $5, so she sold 50 shares.
To find the gain or loss, we need to calculate the total cost and total selling price of the shares.
1. Selling 200 shares at $5,975 means the selling price per share is $5,975/200 = $29.875.
Now, let's calculate the total cost when Mrs. Smith bought additional shares:
2. When the price per share decreased by $3, she bought 100 more shares. So, the purchasing price per share is $29.875 - $3 = $26.875.
Therefore, the total cost for these 100 shares is $26.875 * 100 = $2,687.50.
Next, we need to calculate the cost when she sold 50 shares:
3. When the price per share increased by $5, she sold 50 shares. So, the selling price per share is $29.875 + $5 = $34.875.
Therefore, the total selling price for these 50 shares is $34.875 * 50 = $1,743.75.
Now, we can calculate Mrs. Smith's gain or loss:
- The total cost of buying additional 100 shares is $2,687.50.
- The total selling price of 50 shares is $1,743.75.
- Mrs. Smith gained or lost = total selling price - total cost
= $1,743.75 - $2,687.50
= -$943.75 (Mrs. Smith lost $943.75 in her transactions).
Therefore, Mrs. Smith lost $943.75 in her transactions.