Question

6) John purchased 120 shares of Walmart stock at $58.02 each. He sold the stock for $120.98.

Did John make a profit or take a loss? How much?

Answer 1

John lost $6841.42.

Explanation:

Let's find out how much John paid for the stock he bought. Each share cost $58.02. He bought 120 shares. Multiply the price by the number of shares.

58.02 x 120 = 6962.40

He sold the stock for $120.98 -- a huge loss! (We are not told that the $120.98 is the selling price of one share, so I'm assuming that's what John sold all his shares for.)

Find the difference to see what his loss was.

$6962.40 - $120.98 = $6841.42 LOST!