Question

A broker bought stock at $21.45 per share and sold it the following month for $26.40 per share. what was his gross profit before commissions and taxes on 120 share sold

Answer 1

We need to find the profit made per share first.

Then multiply profit per shares to total shares sold

Profit = Selling price - Cost price

Where:

Selling price = $26.40 per dollar

Cost price = $21.45 per dollar

Profit = $26.40 per dollar - $21.45 per dollar = $4.95 per share.

Gross profit = Profit per share x No of shares.

Gross profit = 4.95 x 120 = $594