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How do you calculate the net profit/loss in a scenario in which an investor bought 200 shares at $10/share, then decided to sell all 200 at $25/share?

there's a 2% commission fee for all buy and sell transactions.

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How do you calculate the net profit/loss in a scenario in which an investor bought 200 shares at $10/share, then decided to sell all 200 at $25/share?

there's a 2% commission fee for all buy and sell transactions.

Answer

Net is the total received from sale - the amount of purchase - total fees.
The purchase cost is 200 * 10 * 1.02 = qty * price * commission = $2040 The proceed are 200 * 25 - (0.02 * 200 * 25) = $4900 so the profit is 4900 - 2040 = $2860

Virtual Teaching Assistant: Colleen R.
Question Level: Basic
Karma: Free
Upload Date: 5/31/2017

This 38 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 96 views.

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