Question

You purchased 100 shares of stock for $78 per share. You sold the stock four years later for $92 per share. What is your gain after the sale of the investment?

Answer 1

Answer:

$1,400

Explanation:

The gain after the sale of the investment is the excess of the total selling amount over the cost of acquiring the shares initially.

Cost of initial acquisition=100*$78=$7800

Proceeds from shares disposal=100*$92=$9200

The gain after the sale of the investment=$9,200-$7,800

The gain after the sale of the investment=$1,400