A share of stock in the Bree Medical Supply Company is quoted at 35 1/4?
luisa s asked:
Suppose you hold 20 shares of that stock, which you bought at 31 1/2. If you sold your stock at 35 1/4, which of the following would be true?
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Suppose you hold 20 shares of that stock, which you bought at 31 1/2. If you sold your stock at 35 1/4, which of the following would be true?
A. You made a profit of $75.00.
B. You suffered a loss of $75.00.
C. You made a profit of $705.00.
D. You suffered a loss of $630.00.
February 6th, 2009 at 1:21 pm
Profit of $75 less broker fees and capital gains.
February 7th, 2009 at 4:00 am
A, take the difference and multiply by 20.
February 8th, 2009 at 12:15 pm
A. you made a profit of $75.
February 9th, 2009 at 2:55 pm
none are true. The gross is $75.00 but you had to pay a minimum of $5.00 to buy the stock and a minimum of $5.00 to sell the stock, reducing your gross to $65.00. If this is a short term transaction and you are in the 28% federal bracket and 5% state and local bracket then your net after tax profit is reduced to $44.20.