Final answer:
To find the net profit from each stock transaction, subtract the initial purchase cost and transaction fees from the total sale revenue. Profits for the three examples are $14960.02 for Nike, $7760 for Panda Express, and $27704.02 for Wal Mart respectively.
Step-by-step explanation:
Understanding Stock Profit Calculations
To calculate the net profit from each stock transaction, you need to consider the initial purchase price, the selling price, and the transaction fees charged by the stock company. Let's walk through the provided examples:
- Example 1: Bought 1000 Nike shares at $24.50 each. The current price is $39.75. Transaction fee is $9.99. Profit = (Selling price - Purchase price) * Number of shares - Transaction fee * 2. So, profit = ($39.75 - $24.50) * 1000 - ($9.99 * 2) = $14960.02.
- Example 2: Bought 800 Panda Express shares at $13.50 each. The current price is $23.25. Transaction fee is $10. Profit calculation: ($23.25 - $13.50) * 800 - ($10 * 2) = $7760.
- Example 3: Bought 1200 Wal Mart shares at $35.50 each. The current price is $58.75. Transaction fee is $12.99. Profit calculation: ($58.75 - $35.50) * 1200 - ($12.99 * 2) = $27704.02.
For the stock transactions mentioned, if you had invested and sold at the prices given, your net profit for each transaction would be $14960.02, $7760, and $27704.02, respectively.