Question

Her original cost basis was 100 × $50 = $5,000. She now has 110 shares still worth $5,000. $5,000 divided by 110 equals $45.45.

Answer 1

To calculate the net profit in a stock transaction, subtract the transaction fees from the difference between the selling and buying values of the shares.

Step-by-step explanation:

In the given question, the subject is about buying and selling stocks and calculating net profit. The student is provided with information about the number of shares bought, the purchase price, the current share price, and the transaction fees. To calculate the net profit, the student needs to subtract the transaction fees from the difference between the selling value and the buying value of the shares. Let's use the example given:

Randy bought 800 shares of stock in at $19.50 per share and wants to sell them at $34.50 per share. The transaction fee is $10 per transaction. The net profit can be calculated as follows:

1. Buying value = 800 shares * $19.50 = $15,600
2. Selling value = 800 shares * $34.50 = $27,600
3. Net profit = Selling value - Buying value - Transaction fee = $27,600 - $15,600 - $10 = $12,000

So, the net profit from this stock transaction is $12,000.