Final answer:
Ryan Neal experienced a gain of $6,121.75 from his stock transactions, after buying 1,900 shares of Ford at $15.97 and selling them at $20.28, factoring in a 3% commission on both the purchase and the sale.
Step-by-step explanation:
To calculate Ryan Neal's gain or loss from his stock transactions involving Ford (F), we need to account for both the buying and selling prices, the number of shares, and the commission fees.
First, we determine the total initial purchase cost, including the commission, using the formula: Total Purchase Cost = (Price per Share x Number of Shares) + Commission. Ryan bought 1,900 shares at $15.97 per share. The commission is 3% of that purchase price.
Total Purchase Cost = (1,900 x $15.97) + 0.03(1,900 x $15.97) = $30,343 + $911.29 = $31,254.29.
Next, we calculate the total sale proceeds, subtracting the commission using the formula: Total Sale Proceeds = (Price per Share x Number of Shares) - Commission. Ryan sold the shares at $20.28 per share.
Total Sale Proceeds = (1,900 x $20.28) - 0.03(1,900 x $20.28) = $38,532 - $1,155.96 = $37,376.04.
To find the gain or loss, we subtract the purchase cost from the sale proceeds:
Gain/Loss = Total Sale Proceeds - Total Purchase Cost = $37,376.04 - $31,254.29 = $6,121.75.
Therefore, Ryan Neal's gain from his investment in Ford (F) stocks is $6,121.75.