1. One morning you decide to purchase 300 shares of a stock at $6.31/sh. At the end of the day, you sell all of the shares for $8.24/sh. How much did you make or lose? One morning you decide to purchase 300 shares of a stock at $6.31/sh. What was gained or lost?
2. You decide to invest $5,200 into a stock worth $10.00/sh. You then sell the shares at $7.80/sh. How much did you lose?
300 * 6.31 = ?
300 * 8.24 = ?
Subtract!
What don't you understand about # 2?
These are questions from a test. Please do not respond.
1. To calculate how much you made or lost, you need to subtract the total cost of purchasing the shares from the total revenue generated by selling them.
To calculate the total cost of purchasing the shares:
Total Cost = Number of shares * Price per share
Total Cost = 300 shares * $6.31/share
Total Cost = $1893
To calculate the total revenue generated by selling the shares:
Total Revenue = Number of shares * Price per share
Total Revenue = 300 shares * $8.24/share
Total Revenue = $2472
To find out how much you made or lost:
Profit/Loss = Total Revenue - Total Cost
Profit/Loss = $2472 - $1893
Profit/Loss = $579
Therefore, you made a profit of $579 when you sold the 300 shares of stock.
To determine what was gained or lost, you can calculate the difference between the selling price and the buying price per share.
Difference = Selling Price per share - Buying Price per share
Difference = $8.24/share - $6.31/share
Difference = $1.93/share
Since you bought 300 shares, you can calculate the gain/loss by multiplying the difference per share by the number of shares:
Gain/Loss = Difference * Number of shares
Gain/Loss = $1.93/share * 300 shares
Gain/Loss = $579
Therefore, you gained $579 when you purchased the 300 shares of stock at $6.31 per share.
2. To calculate how much you lost, you need to subtract the total revenue generated by selling the shares from the total cost of purchasing the shares.
To calculate the total cost of purchasing the shares:
Total Cost = Number of shares * Price per share
Total Cost = $5,200
To calculate the total revenue generated by selling the shares:
Total Revenue = Number of shares * Price per share
Total Revenue = $7.80/share * $5,200
Total Revenue = $4,056
To find out how much you lost:
Loss = Total Cost - Total Revenue
Loss = $5,200 - $4,056
Loss = $1,144
Therefore, you lost $1,144 when you sold the shares at $7.80 per share.