Question

Jack bought 500 shares in Glastonbury Goods at $17.85 per share on January 18, 2015. On January 25, 2017, he sold 300 shares after its price had dropped to $15.25 per share. He bought 250 more shares on January 31, 2017 when the price had fallen to $11.90 a share. He sold all of his stock at $18.00 per share on February 5, 2017. How much of a profit/loss did Jack make over the course of his investment? ____________________ profit or loss

Answer 1

$775 profit

Explanation:

Here, we want to know how much profit or loss Jack made;

he sold 300 shares at $15.25

Amount lost on this will be;

(17.85-15.25) * 300 = -$780

The number of shares he sold at $18 will be the 250 he bought now, and the 200 left unsold before

So profit now will be;

200(18-17.85) + 250(18-11.9)

= $30 + $1525 = $1555

So he made $1555 and lost $780

The amount of profit made is $1555-$780 = $775