Final answer:
The student's question about calculating the profit from buying and selling stocks is a High School level Mathematics question.
Step-by-step explanation:
The question involves calculating the profit or loss from buying and selling stocks, which is a practical application of arithmetic and algebra in mathematics. Calculating stock transaction profits requires understanding of concepts like initial investment, selling price, and net return. Let's examine the scenario where 100 shares of XYZ stock were purchased at $50 per share and sold six years later for $7300 in total.
First, we calculate the total initial investment by multiplying the number of shares by the purchase price per share:
- Initial investment = number of shares × purchase price per share
- Initial investment = 100 shares × $50/share
- Initial investment = $5000
Next, subtract the initial investment from the total amount obtained from selling the stock to find the gross profit:
- Gross profit = selling price - initial investment
- Gross profit = $7300 - $5000
- Gross profit = $2300
However, we need to account for any transaction fees associated with buying and selling the stocks to determine the net profit. Assuming a transaction fee similar to what is mentioned in the reference material ($10 per transaction), the net profit would be calculated as follows:
- Net profit = gross profit - total transaction fees
- Net profit = $2300 - (2 × $10)
- Net profit = $2300 - $20
- Net profit = $2280
Thus, the net profit from buying and selling 100 shares of XYZ stock would be $2280, assuming a transaction fee of $10 per buy and sell.