an investor purchased 40 shares of stock in a company for $1,200, with an $8 commission. later, all of the…

an investor purchased 40 shares of stock in a company for $1,200, with an $8 commission. later, all of the stock was sold at $37 per share. what was the gain or loss on this investment? gain or loss = $? enter a gain as positive and a loss as negative.

an investor purchased 40 shares of stock in a company for $1,200, with an $8 commission. later, all of the stock was sold at $37 per share. what was the gain or loss on this investment? gain or loss = $? enter a gain as positive and a loss as negative.

Answer

Explanation:

Step1: Calculate total cost

The cost of 40 - share purchase is the sum of the stock - price and the commission. The stock - price is $1200 and the commission is $8, so the total cost $C = 1200 + 8=1208$.

Step2: Calculate total selling price

The selling price per share is $37, and the number of shares is 40. So the total selling price $S=37\times40 = 1480$.

Step3: Calculate gain or loss

The gain or loss $G$ is the selling price minus the cost, $G=S - C$. Substitute $S = 1480$ and $C = 1208$ into the formula: $G=1480−1208 = 272$.

Answer:

272