Question

A share of stock in the Bree Medical Supply Company is quoted at 351/4. Suppose you hold 20 shares of that stock, which you bought at 311/2. If you sold your stock at 351/4, which of the following would be true? A. You suffered a loss of $630.00. B. You made a profit of $75.00. C. You suffered a loss of $75.00. D. You made a profit of $705.00.

Answer 1

The correct answer is B. You made a profit of $75.00.

Answer 2

Option B. I made a profit of $75.

Explanation:

If I bought 20 shares of the stock at the rate of $31.5 and sold it at $35.25 then we have to calculate the net output.

With the purchase of 20 shares total amount invested = 20×31.5 = $630

and by selling these shares at $35.25 I got the money = 20×35.25 = $705

here we see the selling amount is higher than costing amount therefore i made a profit of $705 - $630 = $75.

Therefore option B is the answer.