Question

3. Wanda bought a share in Tasty Ice Cream for $25 on March 1. On June 13, Tasty Ice Cream's shares were trading

Answer 1

Answer:

D) Wanda will receive $23.50 for her share, meaning she lost $1.50 on the investment.

Step-by-step explanation:

Identify what you know:

1) Wanda bought a single share in Tasty Ice Cream for $25.00 on March 1st.

2) Tasty Ice Cream's stock price dropped to $23.50 (-1.50).

When investing in the stock market, you are always attempting to make a profit. So, you buy a stock when it's "low," and buy it when the prices go up. In reality, Wanda shouldn't sell her share yet, because she will lose $1.50. However, there is nothing stopping her, if she wanted to. Since the share is worth $23.50, Wanda will make $23.50 if she sells her share on June 13th.