Question

Kim placed an order with her broker for 700 shares of each of three IPOs being offered this week. Each of the IPOs has an offer price of $23. The number of shares allocated to Kim along with the closing prices on the first trading day are: Stock Shares Allocated Price A 700 $ 22.15 B 360 26.43 C 240 28.87 What is Kim's total profit on these three stocks at the end of the first day of trading?

Answer 1

Answer:

$2,049

Explanation:

The profit or loss on a stock portfolio can be determined by by comparing the stock closing value at a specific date and the purchase price.  

As per given data

Stock   Shares    Allocated Price

A            700         $22.15

B            360         $26.43

C            240         $28.87

Purchase price = (700 + 360 + 240 ) shares  x $23 = $29,900

First day Closing Value of Portfolio

Stock   Shares    Allocated Price  Value

A            700         $22.15             $15,505

B            360         $26.43            $9,514.8

C            240         $28.87           $6,928.8

Total                                             $31,948.6

Profit on the first day closing = Closing price of Portfolio - Purchase price

Profit on the first day closing = $31,948.6 - $29,900 = $2,048.6