Question

Jill Bower purchased 340 shares of stock for $26 a share and sold it for $32 a share. The commissions required to buy and sell her stock totaled $160 for each transaction. Assuming she received no dividends during the time she owned the stock, what is her total investment on the purchase of this stock?

Answer 1

Answer:

$8680

Explanation:

Given: Quantity of share purchased = 340 shares.

           Purchased price= $26 per share.

           Selling price= $32 per share.

           Commission paid for each transaction= $160.

Now, computing to find the total investment on the purchase of the stock.

Total investment= $(Purchase\ price \times\ quantity\ purchased) - Commission\ paid$

⇒ Total investment=  $(\ 26\times 340) - \ 160$

⇒ Total investment= $\ 8840 - \ 160$

∴ Total investment=  $\ 8680$

Hence, total investment on the purchase of the stock is $8680.