Missy bought 300 shares of GAM Corp. for 14 1/2 per share. What was the

total purchase price of the stock if she had to pay a 1% commission to
her stockbroker?

1 answer

First, calculate the total cost of the stock before commission:

Total cost = Number of shares x Price per share
Total cost = 300 shares x $14.50/share
Total cost = $4350

Next, calculate the commission Missy had to pay:

Commission = 1% of total cost
Commission = 0.01 x $4350
Commission = $43.50

Finally, calculate the total purchase price of the stock including commission:

Total purchase price = Total cost + Commission
Total purchase price = $4350 + $43.50
Total purchase price = $4393.50

Therefore, the total purchase price of the stock including commission was $4393.50.