A share of stock in the Bree Medical Supply Company is quoted at 351/4. Suppose you hold 20 shares of that stock, which you bought at 311/2. If you sold your stock at 351/4, which of the following would be true?

Question

Question 6 options:

A)

You made a profit of $705.00.

B)

You suffered a loss of $75.00.

C)

You made a profit of $75.00.

D)

You suffered a loss of $630.00.

Answer 1

To determine whether you made a profit or a loss, we first need to calculate the total cost of buying the shares and the total amount received from selling them.

1. Cost of buying the shares:

   • You bought 20 shares at $31.50 each.
   • Total cost = 20 shares * $31.50/share = $630.00

2. Proceeds from selling the shares:

   • You sold 20 shares at $35.25 each.
   • Total proceeds = 20 shares * $35.25/share = $705.00

3. Calculating the profit or loss:

   • Profit or Loss = Total proceeds - Total cost
   • Profit or Loss = $705.00 - $630.00 = $75.00

Since the result is positive, you made a profit of $75.00.

Thus, the correct answer is: C) You made a profit of $75.00.