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

$8680

Step-by-step 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 *\ quantity\ purchased) - Commission\ paid`

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

⇒ Total investment=
`\$ 8840 - \$ 160`

∴ Total investment=
`\$ 8680`

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