Question

Last year I bought 1,000 shares of Shurshot Enterprises at $17 1/4 per share. Today the stock is quoted at $17 3/8 Without considering brokerage fees and taxes, how many shares should I sell today in order to make a profit of $100.A. 40B.80C.400D.800

Answer 1

Last year price per share: $17 1/4 = $17.25

Today's price per share: $17 3/8 = $17.325

This is equal to:

The number of shares I bought last year: 1000

The profit per share is:

$17.325 - $17.25 = $0.125

If I sell x shares to make $100 of profit, we have the equation:

0.125*x = 100

Solving for x, we divide both sides by 0.125:

0.125*x/0.125 = 100/0.125

But: 0.125 = 1/8

x = 100/(1/8)

x = 80

I need to sell 80 shares in order to make a profit of $100