Question

Joes brokers fee schedule is given in the table. Joes current portfolio is worth $50,000. He wants to purchase 50 shares of a companys stock fir a purchase price of $15 per share.

Joe will need to pay a commission of _____.
a. $7.50,
b. $5.00,
c. $1.50

Answer 1

If Joe is charged $1.50 per share, the total commission would be $7.50.

Joe wants to purchase 50 shares of a company's stock at $15 per share. The broker charges a fee based on the number of shares traded.

Given options:

a. $7.50

b. $5.00

c. $1.50

If Joe is charged $7.50 per share, the total commission would be 50 shares * $7.50/share = $375.

If Joe is charged $5.00 per share, the total commission would be 50 shares * $5.00/share = $250.

If Joe is charged $1.50 per share, the total commission would be 50 shares * $1.50/share = $75.

Therefore, the correct answer is: a. $7.50