Abram's total fees for the year if he trades with Stocks & More are $16.50. His final return for the year after deducting all fees, but before he pays taxes on his gain, is $2233.50. Abram's total fees for the year if he trades with Trading Station are $14.25. His final return for the year after deducting all fees, but before he pays taxes on his gain, is $2235.75.
Stocks & More:
Total fees for the year:
$1 per trade + 0.1% of the trade value
$1 * 5 trades + 0.1% * ($900 + $350 + $750) = $16.50
Final return for the year after deducting all fees, but before he pays taxes on his gain:
Net proceeds from sale of stocks - total fees
$2250 - $16.50 = $2233.50
Trading Station:
Total fees for the year:
$2 per trade + 0.05% of the trade value
$2 * 5 trades + 0.05% * ($900 + $350 + $750) = $14.25
Final return for the year after deducting all fees, but before he pays taxes on his gain:
Net proceeds from sale of stocks - total fees
$2250 - $14.25 = $2235.75
Comparison:
Broker Total fees for the year Final return for the year after deducting all fees, but before he pays taxes on his gain
Stocks & More $16.50 $2233.50
Trading Station $14.25 $2235.75
As you can see, Trading Station has slightly lower fees than Stocks & More.
This means that Abram would keep slightly more money if he traded with Trading Station.
Abram's total fees for the year if he trades with Stocks & More are $16.50.
His final return for the year after deducting all fees, but before he pays taxes on his gain, is $2233.50.
Abram's total fees for the year if he trades with Trading Station are $14.25.
His final return for the year after deducting all fees, but before he pays taxes on his gain, is $2235.75.
Trading Station has slightly lower fees than Stocks & More, so Abram would keep slightly more money if he traded with Trading Station.
Question
Abram is an investor. The table summarizes Abram's trades in a year.
Date Details Price per Share($) Number of Shares
1-1-16 starting value ($900) 90 10
3-11-16 bought stock 70 5
5-10-16 bought stock 50 15
12-30-16 sold stock 75 30
Compute and compare Abram's fees to trade with Stocks & More and with Trading Station for the year.
Type the correct answer in each box. Use numerals instead of words.
His final return for the year after
Abram's total fees for the year if he trades with Stocks & More are $ deducting all fees, but before he pays taxes on his gain, is $
His final return for the year after
Abram's total fees for the year if he trades with Trading Station are $ deducting all fees, but before he pays taxes on his gain