Question

Larry purchase 8000 shares of a stock at a price of $7.29 a share. He sold the stock six years later at the price of $10.31 per share. What is this percent gap gain

Answer 1

Number of shares bought = 8,000

Purchase price =$7.29

Total purchase price = 8000*7.29 = 58,320

Sale price = $10.31

Total selling price = 8000*10.31 = 82,480

Total Gain = 82,480 -58,320

Total Gain = 24,160

Percentage Gain = Total gain/ Total Purchase price *100

Percentage Gain = 24,160/58,320 * 100 = 41.43%

Percentage Gain = 41.43% (Rounded to two decimals)