Question

You bought 50 shares of stock at $55 per share and sold them for $61 per share. The sale involves a broker’s commission of $0.30 per share. What is your profit?

a) $215
b) $285
c) $315
d) $385

Answer 1

The profit made is;

b) $285)

Explanation:

The given parameters are;

The number of shares bought, n = 50

The price each share is bought, CP = $55

The amount at which each share is sold, SP = $61

The amount the broker received per share, E = $0.30

Therefore, the amount of profit, 'P', is given as follows;

P = n × (SP - CP - E)

By substituting the values for the variables, we have;

P = 50 × (61 - 55 - 0.3) = 285

The amount made as profit, P = $285.00.