Question

two years ago, you purchased 203 shares of ibm stock for $164 a share. today, you sold your ibm stock for $172 a share. for this problem, ignore commissions that would be charged to buy and sell your ibm shares and dividends you might have received as a shareholder. what is the amount of profit you earned on each share of ibm stock? what is the total amount of profit for your ibm investment?

Answer 1

The profit earned on each share of IBM stock is $8. The total profit for the IBM investment is $1,624.

Step-by-step explanation:

To calculate the amount of profit you earned on each share of IBM stock, you need to subtract the purchase price per share from the selling price per share. In this case, the purchase price was $164 and the selling price was $172, so the profit per share is $172 - $164 = $8.

To calculate the total amount of profit for your IBM investment, you need to multiply the profit per share by the number of shares you owned. In this case, you purchased 203 shares, so the total profit is $8 * 203 = $1,624.