Final answer:
The total cost of the stock on hand can be calculated by adding up the cost of buying the stock and any transaction fees for each individual transaction. The net profit from each stock transaction can be obtained by subtracting the total cost of buying the stock from the current value of the stock and then subtracting any transaction fees. Summing up the net profits from each transaction will give you the total cost of the stock on hand.
Step-by-step explanation:
The total cost of the stock on hand can be calculated by adding up the cost of buying the stock and any transaction fees. Let's consider an example:
- Suppose you purchased 1000 shares of Nike at $24.50 per share, with a transaction fee of $9.99 per stock company.
- Currently, the price of Nike stock is $39.75 per share.
- To calculate your net profit from each stock transaction, subtract the total cost of buying the stock (1000 * $24.50) from the current value of the stock (1000 * $39.75). Then subtract the transaction fee from the net profit.
- Repeat this calculation for each different stock and sum up the net profits from each transaction to get the total cost of the stock on hand.
Using this method, you can determine the total cost of the stock on hand for any given set of stock transactions.