An investor purchased 700 shares of stock at $54.03 per share. She later sold them for $53.62. The broker's commission was 3% of the purchase price and 1% of the selling price. What is the amount the investor lost on the stock?
gain=.01(700*sellingprice)-.03(700*buyingprice)
To find out the amount the investor lost on the stock, we need to calculate the total cost of buying the stock and the total proceeds from selling the stock, taking into account the broker's commission.
First, let's calculate the total cost of buying the stock:
Total Cost of Buying = Purchase Price per Share * Number of Shares
In this case, the purchase price per share is $54.03, and the investor purchased 700 shares. Therefore, the total cost of buying the stock is:
Total Cost of Buying = $54.03 * 700
Next, let's calculate the total proceeds from selling the stock:
Total Proceeds from Selling = Selling Price per Share * Number of Shares
In this case, the selling price per share is $53.62, and the investor sold 700 shares. Therefore, the total proceeds from selling the stock is:
Total Proceeds from Selling = $53.62 * 700
Now, let's calculate the broker's commission for buying:
Broker's Commission for Buying = (3/100) * Total Cost of Buying
And the broker's commission for selling:
Broker's Commission for Selling = (1/100) * Total Proceeds from Selling
To find the amount the investor lost on the stock, we can calculate the net profit or loss using the following formula:
Net Profit or Loss = Total Proceeds from Selling - Total Cost of Buying - Broker's Commission for Buying - Broker's Commission for Selling
Plugging in the values we calculated, we can find the answer.