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# Date

Period

12-5

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

Example

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?

• 1.

Find the net sale. (\$170 50) \$15 \$8,485 net sale

• 2.

Is the net sale greater than or less than the amount paid? \$8,485 is less than \$8,600

• 3.

Find the net loss. \$8,600 \$8,485 \$115 loss

Practice

Find the net sale and the profit or loss.

Total Paid

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

a.

b.

a.

b.

a.

b.

# Commissio

n

Net

Profit or

Sale

Loss

\$60.00 \$75.00 \$0.15 per sh

are

• 4.

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?

• 5.

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?

• 6.

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 ?

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