Question

The commission structure on a stock purchase is $45 plus $0.04 per share. If you purchase five round lots of a stock selling for $130, what is your commission

Answer 1

The commission for purchasing five round lots of a stock selling for $130 is $65.

What is round lots of a stock?

A specified quantity of securities to be traded on an exchange is known as a round lot. In the stock market, a round lot is defined as 100 shares or a bigger number that may be divided in half equally.

1 round lots = 100 shares

5 round lots = 500 shares

The commission structure on a stock purchase is $45 plus $0.04 per share.

For 500 shares, the commission is

= 45 + 0.04×500

= 65

Therefore, the commission for purchasing 500 shares of stock selling for $130 is $65.

To know more about commission, here

brainly.com/question/957886

#SPJ4