You purchase 240 shares of stock at $37.60 per share. Several months later you sell the shares at $33.10. Your broker charges 2% commission on round lots and 3% on odd lots. Calculate the gain or loss (in $) on the transaction.

Q: On 1 June, shares in Blue.com traded at $30.58. Your broker allowed you to buy the shares on margin…

A: Given: Purchase price = $30.58 Closing price = $26.42 Initial margin = 60%

Q: You purchase 380 shares of stock at $37.60 per share. Several months later you sell the shares at…

A: Gain or loss will be the difference between to total purchase price and net proceeds Gain or loss…

Q: You own 3,000 shares of stock in Avondale Corp. You will receive a $0.85 per share dividend in one…

A: Liquidating dividends are those that are paid by the company to its shareholders when the company is…

Q: You’ve just opened a margin account with $13,475 at your local brokerage firm. You instruct your…

A: Step 1: Calculate the Total Purchase Price of the StockTotal Purchase Price =Number of Shares×Price…

Q: Use the commission schedule from Company A shown in the table to find the annual rate of interest…

A: Here,No. of Shares is 330 sharesPurchase Price of Shares is $10.69Selling Price of Share is $18.91

Q: your client purchased 100 shares od a security for $20 per share. at the end of year one she…

A: To calculate the time-weighted average return of the security, we can break down the investment into…

Q: You purchased 100 shares of Facebook, Inc. common stock on margin at $169.25 per share.Assume the…

A: Nos. of stocks purchased, N = 100Price per share, P = $ 169.25 / shareTotal purchase consideration,…

Q: An investor short sells 100 shares of a stock for $68.18 per share. The initial margin is 57%, and…

A: ParticularsValuesNumber of share100Stock price per share$68.18Initial margin57%Current stock…

Q: On January 1, you sold short one round lot (that is, 100 shares) of Snow's stock at $20.00 per…

A: In short sell is virtual selling in which do not own stock but tends to buy later on with decrease…

Q: An investor buys 200 shares of stock selling at ​$71 per share using a margin of ​70%. The stock…

A: STEP 1 A rate of return for a time period that is shorter than a year but is calculated as if it…

Q: On March 1st, Frank opens a brokerage account and sell shorts 300 shares of Doggie Treats Inc. at…

A: Stock: Stock is the number of shares being owned by the company. It is being segregated into two…

Q: An investor short sells 250 shares of a stock for $43 per share. The initial margin is 60%. Ignoring…

A: Initial margin The amount kept aside to protect from the risk of the counterparty is known as the…

Q: You purchased 74 shares of Z stock in January 2008 for $40 per share. Each year you recelved a cash…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Use the commission schedule from Company A shown in the table to find the annual rate of interest…

A: The rate of return on the stock refers to the annual profits provided by the stock to the investors.…

Q: You purchase 100 shares of COST for $280 per share. Three months later, you sell the stock for $290…

A: Number Of Shares Purchased   $ 100.00 Cost Per Share  $ 280.00 Selling Value  $ 290.00 Time…

Q: A share that can be purchased for $1,173.70 will pay a quarterly dividend in perpetuity at the rate…

A: Dividend is an additional amount paid by the company to the shareholders as a return. It is an…

Q: An investor buys 200 shares of stock selling at $52 per share using a margin of 64%. The stock pays…

A: Number of shares = 200 sharesSelling price per share = $52Annual dividend = $1Annual interest cost =…

Q: margin at $35 per share. $2000 is borrowed from the broker to complete the purchase. Determine the…

A: Margin account is to be opened with brokers to start trading in the market and to have open…

Q: purchased 90 shares of a stock at the start of the month, with part of the purchase financed by your…

A: In stock market trading is done through brokers and broker require margin in account and remain…

Q: In you cash account, you buy 100 shares of XYZ Corporation at a price of $10 per share. Two months…

A: Returns refer to the income earned by investing and holding the securities, it includes the cash…

Q: You purchased 100 shares of Chipotle Mexican Grill, Inc. (CMG) common stock on a margin of $431.79…

A: To calculate the return on equity (ROE) for your investment in Chipotle Mexican Grill, Inc. (CMG)…

Q: 5000 shares of stock were purchased at $25 per share with a 5% broker commission.  The following…

A: a) Computation of Cost of Investment:

Q: Suppose that you just purchased 250 shares of Beta Banana's stock for $70 per share. The initial…

A: A margin call is made when an investor's equity, expressed as a percentage of the total market value…

Q: On October 1, you sold short 100 shares of Wayne stock at $25 per share. On December 1, a dividend…

A: A short sale is a type of financial transaction where an investor sells a financial item that they…

Q: a) You purchase 516 shares of ABC Co. stock on margin at a price of $37. Your broker requires you to…

A: STEP 1 MARGIN CALL A margin call is a notification from the brokerage business that the amount of…

Q: An investor short sells 100 shares of a stock for $68.59 per share. The initial margin is 58%, and…

A: Margin refers to the amount of money that is borrowed to finance the underlying transaction, It is…

Q: Assume you purchased 2000 shares of XYZ common stock on margin at $ 30 per share from your broker .…

A: Interest amount will be computed by finding the leverage amount taken from the broker.

Q: You purchased 100 shares of stock at $30 per share.  You paid a 2% commission on the purchase.   In…

A: Current yield in the rate of return earned in the current transaction. Annual yield is the rate of…

Q: On March 1st, Frank opens a brokerage account and sell shorts 200 shares of Doggie Treats Inc. at…

A: The margin requirement is the minimum amount that the investor needs to keep in the margin account.…

Q: You purchase 60 shares for $60 a share ($3,600), and after a year the price falls to $55. Calculate…

A: The return on investment is a measurement used to quantify how much income or amount of money an…

Q: You purchased 74 shares of Z stock in January 2008 for $40 per share. Each year you received a cash…

A: Purchase Cost (74*$40)$2,960ADD: Brokerage (2,960*3%)$88.80TOTAL PURCHASE COST.$3,048.80

Q: On 1 June, shares in Blue.com traded at $61.25. Your broker allowed you to buy the shares on margin…

A: Percentage of return = Total return / Initial price of shares

Q: You've just opened a margin account with $27,755 at your local brokerage firm. You instruct your…

A: The dollar returns on the stock investment will be the sum of capital gains due to the appreciation…

Q: Katty bought a stock at $40 per share using 60% initial margin. The broker charges 8% on the loan…

A: The margin account refers to the brokerage account where the investor needs to invest only a part of…

Q: Suppose you sold short 100 shares of some stock on January 1 at a price of $30 per share. A dividend…

A: Gain on Sale = Sale Price of Shares - Cost of acquisition of Share - Transaction cost

Q: You currently own 2,000 shares of Industrial Industries stock. You purchase the stock for $128.34…

A: Holding period return on stock is calculated below Holding period return = P1-P0+D1P0 Where, P1 is…

Q: You purchase 280 shares of stock at $37.80 per share. Several months later you sell the shares at…

A: Total number of stocks purchased is 280 Purchase price per share is $37.80 Selling price per share…

Q: Assume you own shares in Walmart and that the company currently earns $6.80 per share and pays…

A: The amount dispersed as periodical returns for a common stockholder is known as the dividend payout.…