Respuesta :
Given Information:
Number of shares = 150
Buying rate = $12.60 per share
Selling rate = $11.94 per share
Required Information:
Profit or loss = ?
Answer:
Loss = $99
Step-by-step explanation:
The total purchasing cost of the shares is
C = Number of shares*Buying rate
C = 150*$12.60
C = $1890
The total selling cost of the shares is
S = Number of shares*Selling rate
S = 150*$11.94
S = $1791
Profit or loss = Selling cost - Buying cost
Profit or loss = $1791 - $1890
Profit or loss = -$99
Therefore, the investigator has incurred a loss of $99 by this transaction.
Answer:
Since the value is negative his investment resulted in a loss of $99.
Step-by-step explanation:
In order to know the profit or loss margin of the investor we need to know how much was invested, for that we multiply the amount of shares he bought by the value of each share. So we have:
invested = (total shares)*(price per share) = 150*12.6
invested = $1890
He then sold all his shares for a different price, we repeat the process above to know how much he obtained from that. We have:
returned = (total shares)*(price per share) = 150*11.94 = $1791
In order to compute his profit or loss margin we subtract the value he obtained by selling the shares by the value at which they were bought. So we have:
loss = returned - invested = 1791 - 1890 = $-99
Since the value is negative his investment resulted in a loss of $99.
