An investor purchased 70 shares of stock in a company for $$ \$ 4,760 $$, with an $$ \$ 8 $$ commission. Later, all of the stock was sold at $$ \$ 71 $$ per share. What was the gain or loss on this investment? Gain or Loss = $$ \$[?] $$

Question

UpStudy AI · Accepted Answer

To determine the gain or loss on the investment, we'll break down the costs and proceeds step by step.

### **1. Initial Purchase:**
- **Number of Shares Purchased:** 70
- **Total Cost for Shares:** \$4,760
- **Commission Paid:** \$8
- **Total Initial Investment:** 
  $$
  \$4,760 \, (\text{for shares}) + \$8 \, (\text{commission}) = \$4,768
  $$

### **2. Sale of Shares:**
- **Selling Price per Share:** \$71
- **Total Proceeds from Sale:** 
  $$
  70 \, \text{shares} \times \$71/\text{share} = \$4,970
  $$
  
*Note:* The problem doesn't mention any commission or fees associated with the sale, so we'll assume there are none.

### **3. Calculating Gain or Loss:**
$$
\text{Gain or Loss} = \text{Total Proceeds} - \text{Total Initial Investment}
$$
$$
\text{Gain or Loss} = \$4,970 - \$4,768 = \$202
$$

### **Conclusion:**
The investor made a **gain of \$202** on this investment.

**Answer:** Gain or Loss = \$202
The investor made a gain of \$202 on this investment.

An investor purchased 70 shares of stock in a company for \( \$ 4,760 \), with an \( \$ 8 \) commission. Later, all of the stock was sold at \( \$ 71 \) per share. What was the gain or loss on this investment? Gain or Loss = \( \$[?] \)

Real Tutor Solution

Answer

Solution

Bonus Knowledge

Related Questions

Latest Economics Questions