Calculating the Profit or Loss from a Stock Sale
Selling your stock can result in either a profit or a loss. If the amount you receive on the sale minus the sales commission is greater than the total amount you paid for the stock, then you make a profit. If it is less than the total amount you paid for the stock, then you suffer a loss.
Net Sale Amount of Sale Commission Profit Net Sale Total Paid Loss Total Paid Net Sale
Find the profit or loss.
Morgana LeFey paid a total of $8,600 for 50 shares of stock. She sold the stock for $170 per share and paid her broker a sales commission of $15. What is the profit or loss from the sale?
Find the net sale. ($170 50) $15 $8,485 net sale
Is the net sale greater than or less than the amount paid? $8,485 is less than $8,600
Find the net loss. $8,600 $8,485 $115 loss
Find the net sale and the profit or loss.
Selling Price per Share
Number of Shares
1. 2. 3.
$ 2,850 13,125 5,365
$ 60.00 172.00 33.50
50 75 145
$60.00 $75.00 $0.15 per sh
Al Holman purchased 75 shares of stock and paid a total of $2,625. He sold the stock at a price of $36.82 per share and paid a $19 broker’s commission. What was the net amount of the sale? What was Holman’s profit or loss?
Marybeth Evanston purchased 2,000 shares of stock at $3.15 per share. She recently sold the stock for $3.09 per share. Each transaction carried a broker’s fee of $9.95. What was Evanston’s net amount of the sale? What was her profit or loss?
Standardized Test Practice Robert Masterson bought 150 shares of stock at $52 per share. He held the stock for 2 years and then sold it for $53.25 per share. His online brokerage fee is
$ 8 . 9 5 p l u s $ 0 . 1 0 p e r s h a r e . W h a t i s M a s t e r s o n ’ s p r o fi t o r l o s s ?
A. $139.60 profit
B. $139.60 loss
C. $187.50 profit
D. $187.50 loss
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.