Jason is interested in investing in a company, Phone-Corp., a brand new
company that is manufacturing a new phone that can store pictures and
music. He thinks that this product will revolutionize the cellular phone
industry. The company is selling its shares at $17.29 each. Jason decides to
buy 100 shares. He believes that the company will make significant gains in
the market from this product. Much to his disappointment, another company
produces a similar product before Phone-Corp. has completed its model for
distribution. Many consumers begin to buy the competitor’s phone.
Phone-Corp., struggling to keep up with the competition, postpones the distribution
of its product. The stock of Phone-Corp. suffers and drops to $11.76 per
share. Jason decides to sell his stock. How much money did Jason lose?
