Question

Directions: Read the paragraph and answer the question. The investor bought 100 shares of common stock at $7.50 per share, which gave her a total investment of $750. The stock appreciated in value to $13.00 per share over a four-year period. When the stock reached $13.00 per share, the investor sold it and made a profit of $550 on the transaction. Main idea: When stocks appreciate in value a profit is realized. 3 Select the correct answer. Main idea: When stocks appreciate in value a profit is realized. Which of the following details supports the main idea? A. The purchase price of the common stock was $7.50 per share; after four years it was sold at $13 per share for profit of $550. B. When stocks appreciate $6.50 per share, they should be sold. C. It is necessary to purchase 100 shares of common stock to make a $550 profit. D. To realize a profit, stock must be held four years.

Answer 1

For fewer than 100 shares, the orders are called odd lots. If the investor makes a market order, they are choosing to purchase the stock at the current market price. ... Buying a small number of shares may limit what stocks you can invest in, leaving you open to more risk.

Step-by-step explanation:

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