Question

Calculate the loss on selling 50 shares of stock originally bought at 13 3/4 and sold at 12.

A: $87.50
B: $600.00
C: $687.00
D: $80.00

Answer 1

Answer : A: $87.50

Total shares = 50

Rate of each share bought =
`13(3)/(4) = 13.75`

Cost price of 50 shares = 50 * 13.75 = 687.5

Sold rate of each share = 12

Sale price of 50 shares = 50 * 12 = 600

Loss = cost price - sale price

`Loss = 687.50 - 600 = 87.50`

The loss on selling 50 shares of stock is $87.50

Answer 2

50 shares bought at 13 3/4, or 13.75, say cost the buyer $687.50. The market goes up and down, and for some reason this person decides to sell at 1.75 points lower than they purchased. Therefore, they would experience a loss of $87.50.