Question

an investor purchased 500 shares of common stock, $25 par, for $21,750. subsequently, 100 shares were sold for $49.50 per share. what is the amount of gain or loss on the sale?

Answer 1

The investor made a gain of $600 from the sale of 100 shares of stock. This gain is calculated by subtracting the original cost of the shares ($4350) from the selling price ($4950).

Step-by-step explanation:

The question is asking to calculate the gain or loss from the sale of stock. Initially, an investor purchased 500 shares at $43.50 each (totaling $21,750). Later on, 100 of those shares were sold for $49.50 per share.

The cost of the 100 shares originally purchased would be:

100 shares × $43.50/share = $4350

The selling price of the 100 shares is:

100 shares × $49.50/share = $4950

The gain from the sale is calculated as:

$4950 (selling price) - $4350 (cost) = $600

Therefore, the amount of gain on the sale of the 100 shares is $600.