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

A share of stock in the Bree Medical Supply Company is quoted at 351/4. Bought at = $31 1/2 = 63/2, selling price = 35 1/4 =141/4, Profit = 141/4 - 63/2 = 15/4 Number of shares= 20 , total profit =20 * 15/4 =75 You made a profit of $75.00.

Answer 2

The answer is B. You made a profit of $75.00. . You buy 20 shares for 31 1/2. So, they cost: 20 * 31 1/2 = 20 * (31 + 1/2) = 20 * (62 + 1/2) = 20 * 63/2 = 10 * 63 = $630. You sold them for 35 1/4 each: 20 * 35 1/4 = 20 * (35 + 1/4) = 20 * (140/4 + 1/4) = 20 * 141/4 = 5 * 141 = $705. So, you sold them for the greater amount than you bought them: $705.00 - $630.00 = $75.00