Question

Taylor bought 200 shares of stock for $18.12 per share last year. He paid his broker a fl at fee of $30. He sold the stock this morning for $21 per share, and paid his broker 0.5% commission. a. What were Taylor's net proceeds?

Answer 1

Taylor's net proceeds from the stock transaction are $525, after accounting for the initial purchase cost and broker's commissions on both the buying and selling of the stock.

Step-by-step explanation:

Taylor bought 200 shares of stock at $18.12 per share and paid a flat brokerage fee of $30. To find the initial cost, we multiply the number of shares by the purchase price and then add the fee:

200 shares × $18.12/share + $30 = $3,654

When Taylor sold his shares at $21 per share, his gross proceeds were:

200 shares × $21/share = $4,200

The broker commission of 0.5% on the selling price is calculated as:

$4,200 × 0.005 = $21

To find Taylor's net proceeds, we subtract both the initial cost and the selling commission from the gross proceeds:

$4,200 - $3,654 - $21 = $525

Therefore, Taylor's net proceeds from the stock transaction are $525.

Answer 2

$336 dollars if thats in USD