Question

Elly buys 75 shares of stock in a mutual fund for a total investment of $450. She sells 50 shares of her stock for total proceeds of $400. Determine if Elly made a profit or loss, and how much per share.
a.
loss of $0.67 per share
b.
loss of $2 per share
c.
profit of $0.67 per share
d.
profit of $2 per share

Answer 1

Cost per share = $450 ÷ 75 = $6.
Sale price per share = $400 ÷ 50 = $8.
She made a profit of $8 − $6 = $2 per share.

Answer: d. profit of $2 per share.