Question

Selected hypothetical financial data of Target and Walmart for 2022 are presented here (in millions).

A) Revenue
B) Expenses
C) Profit
D) Stock value

Answer 1

The net profit from each stock transaction can be calculated by subtracting the total cost of purchasing the shares, including transaction fees, from the total revenue generated from selling the shares.

Step-by-step explanation:

When buying and selling stocks, the net profit from each transaction can be calculated by subtracting the total cost of purchasing the shares, including transaction fees, from the total revenue generated from selling the shares. To calculate the net profit, you can use the formula: Net Profit = (Current Price - Purchase Price - Transaction Fees) x Number of Shares Sold.

For example:

1. Net Profit = ($39.75 - $24.50 - $9.99) x 1000 = $5,250
2. Net Profit = ($23.25 - $13.50 - $10) x 800 = $7,400
3. Net Profit = ($58.75 - $35.50 - $12.99) x 1200 = $27,192

So, the net profit from each stock transaction for the given scenarios would be $5,250, $7,400, and $27,192, respectively.