Final answer:
To calculate whether there's a profit or loss from stock transactions, add up purchase costs, subtract from the total revenue of sales, include transaction fees, and then divide by the number of shares. In an example with Nike stock, we find a profit of approximately $15.24 per share.
Step-by-step explanation:
To determine whether a profit or loss has been made from buying and selling stocks, and how much per share, we need to follow these steps:
- Determine the total cost of purchasing the shares.
- Determine the total revenue from selling the shares.
- Subtract the total cost from the total revenue to find the net gain or loss.
- Divide the net gain or loss by the number of shares to find the profit or loss per share.
Consider the example with Nike stock:
- Purchase: 1000 shares at $24.50/share implies a total cost of $24,500.
- Selling price: Current price per share is $39.75.
- Total selling revenue: 1000 shares at $39.75/share gives $39,750.
- Total cost of transaction: $9.99.
- Net gain or loss: $39,750 (total revenue) - $24,500 (purchase cost) - $9.99 (transaction cost) = $15,240.01.
- Profit per share: $15,240.01 net gain divided by 1000 shares = $15.24001 per share.
The result shows a profit of approximately $15.24 per share from this stock transaction.