Question Completion:
Joon bought the shares at this price, and her broker charged her 1% commission. What was the total cost of her investment?
Regne sold the shares of ExxonMobil shown in the above trade and his broker charged him 1.5% commission How much money did the broker receive?
Lisa sold the shares of Chevron indicated above through her discount broker, who charges $28 per transaction. How much did Lisa receive from the above after the broker took his fee.
Answer:
Trades of Stock in Hewlett-Packard (HPQ) ExxonMobil (XOM) and Chevron CTX)
a. Shares of Hewlett-Packard sold = 6,000 (6K)
b. The total value of all the HP shares sold is $63,780.
c. Total cost of Joan's investment is $64,417.80.
d. Regne's broker received a commission of $3,677.40.
e. Lisa received $760,022.
Step-by-step explanation:
a) Data and Calculations:
Hewlett-Packard (HPQ) ExxonMobil (XOM) Chevron CTX)
HPQ 6K10.63 ∨0.23 XOM 3K81.72 ∧ 0.08 CVX 9K84.45 ∨0.22
b) The total value of all the HP shares sold is 6,000 * $10.63
= $63,780
c) Joan's investment:
Investment = $63,780
Broker's commission = 1% = $637.80
Total cost of Joan's investment = $64,417.80 ($63,780 + $637.80)
d) Regne Broker's Commission:
Investment = $245,160 (3,000 * $81.72)
Commission = $3,677.40 ($245,160 * 1.5%)
e) Lisa received from Chevron's stock sale:
Investment = 9,000 * $84.45 = $760,050
Broker's fee = $28
Lisa's receipt = $760,022 ($760,050 - $28)
