Stock in a company is selling for $11 3/4 per share. if some one purchases $893 worth stock in this company, how many shares did they get?
is it 209
The easiest way to figure this problem is to change 11 3/4 to 11.75. (The stock market went to decimals several years ago.)
893/11.75 = ? shares
so it is 76 shares?
Right!
To find the number of shares someone purchased, you need to divide the total amount spent on stock by the price per share.
The price of the stock is given as $11 3/4, which can also be written as $11.75 (since 3/4 is equal to 0.75).
To calculate the number of shares, divide the total amount spent, $893, by the price per share, $11.75.
$893 / $11.75 = 75.957
Since you cannot have a fraction of a share, you need to round the decimal to the nearest whole number. In this case, you would round down or simply remove the decimal portion.
Therefore, the person would have purchased approximately 75 shares in the company, not 209.