Question

Calculate the loss on selling 50 shares of stock originally bought at 133/4 and sold at 12. A. $687.50 B. $87.50 C. $600.00 D. $80.50

Answer 1

The loss would be 1062.50

Explanation:

To find this, first convert the purchase price into a decimal.

133/4 = 33.25

Now multiply that my the number of shares bought.

33.25 * 50 = 1662.50

This is the amount that was spent. Now to find the sale price, multiply the number of shares by the new price.

50 * 12 = 600

And to find the total loss, subtract the amount of the purchase price from the sale price.

600 - 1662.50 = -1062.50

Answer 2

Option B. $87.50

Explanation:

In this question selling price of 50 shares $12 per share and cost price is $12 per share.

Now we have to calculate the loss incurred in selling these shares.

Per share loss = (costing price - selling price)

loss = 13
`(3)/(4)` - 12 =
`(55)/(4)` - 12 = 13.75 - 12 = $1.75

Therefore total loss incurred in selling 50 shares = $1.75 × 50

= $87.50

Therefore Option B. $87.50 is the correct answer.