You bought 1 share of Google for $1,524.05 on March 4 and sold it one week later for $1,565.06. Assuming no dividends were paid, your dollar gain was:

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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**Educational Content: Calculating Dollar Gains from Stock Transactions**

**Scenario:**

You purchased 1 share of Google for $1,524.05 on March 4 and sold it one week later for $1,565.06. Assuming no dividends were paid, your dollar gain was:

**Options:**

- A. Zero
- B. $15.16
- C. $41.01
- D. $92.74
- E. $565.06

**Analysis:**

To calculate the dollar gain from the transaction:
1. Subtract the purchase price from the selling price.
2. Selling Price: $1,565.06
3. Purchase Price: $1,524.05
4. Dollar Gain = $1,565.06 - $1,524.05 = $41.01

Thus, the correct answer is **C. $41.01**. 

This example demonstrates basic principles of investment returns, focusing on the difference between the initial purchase price and the selling price of a stock.
Transcribed Image Text:**Educational Content: Calculating Dollar Gains from Stock Transactions** **Scenario:** You purchased 1 share of Google for $1,524.05 on March 4 and sold it one week later for $1,565.06. Assuming no dividends were paid, your dollar gain was: **Options:** - A. Zero - B. $15.16 - C. $41.01 - D. $92.74 - E. $565.06 **Analysis:** To calculate the dollar gain from the transaction: 1. Subtract the purchase price from the selling price. 2. Selling Price: $1,565.06 3. Purchase Price: $1,524.05 4. Dollar Gain = $1,565.06 - $1,524.05 = $41.01 Thus, the correct answer is **C. $41.01**. This example demonstrates basic principles of investment returns, focusing on the difference between the initial purchase price and the selling price of a stock.
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