Question

Ten years ago, Janie purchased 100 shares of Mega stock for $245 per share.

Answer 1

The net profit from each stock transaction is calculated by subtracting the purchase cost and transaction fees from the total sale proceeds. Examples show calculations for transactions involving shares of Nike, Panda Express, and Wal Mart, demonstrating the general principle of profit calculation in stock trading.

Step-by-step explanation:

The question involves calculating the net profit from the sale of shares of stock. To determine the net profit, we need to calculate the total revenue from selling the shares at the current price, subtract the initial cost of purchasing the shares, and account for the transaction fees charged by the stock company. Here are the step-by-step calculations for each given example:

1. For Nike: Purchased at $24.50, current price $39.75, 1000 shares, transaction fee $9.99.
   Net Profit = (Current Price - Purchase Price) × Number of Shares - Transaction Fee
   Net Profit = ($39.75 - $24.50) × 1000 shares - $9.99
   Net Profit = $15,240.01

2. For Panda Express: Purchased at $13.50, current price $23.25, 800 shares, transaction fee $10.
   Net Profit = (Current Price - Purchase Price) × Number of Shares - Transaction Fee
   Net Profit = ($23.25 - $13.50) × 800 shares - $10
   Net Profit = $7,780

3. For Wal Mart: Purchased at $35.50, current price $58.75, 1200 shares, transaction fee $12.99.
   Net Profit = (Current Price - Purchase Price) × Number of Shares - Transaction Fee
   Net Profit = ($58.75 - $35.50) × 1200 shares - $12.99
   Net Profit = $27,727.01

The complete question is: Ten years ago, Janie purchased 100 shares of Mega stock for $245 per share. is: