ted andrews bought 15 shares of clrk company stock $14.875 he sold them a month later at $20.375 what was his profit?

Question

I don't understand at all

Answer 1

Total amount that Ted paid = 15 shares x $14.875/share = $223.13

Total sold for = 15 shares x $20.375/share = $305.63

Net profit = 305.63 - 223.13 = $82.50

 

Done another way.... Increase per share = $20.375 - $14.875 = $5.50 per share

$5.50/share x 15 shares = $82.50

Answer 2

     OK, here's how stocks work. you buy shares of a company at a certain price. As time goes by, the price of the share either goes up or down. If you sell the shares when the price went up, you made money, but if yousell it at a lower price, you lose money.

 

Let's take an example with easy numbers.

Let's say I bought 10 shares of a stock and each share was $25. That means I spent 25*10 = $250.

Suppose the stock went up to $32 per share. If I now sell my 10 shares, It would be worth 10*32 = $320.....I made $70...yaaaaay!!

 

Let's say I bought 10 shares of a stock at $47 per share, so I spent 47*10 = $470.

Let's say the price went down horribly  to $19 per share. If I sold the shares now, I'd have 10*19 = $190....I lost $280 ...and I'm sad.

 

So you have 15 shares which you bought at $14.875 each which cost you 15*14.875 = 223.13 (money gets rounded to the nearest penny.

Your stock price went up (making you happy) to $20.375 per share. So if you sold your shares it would be worth 15*20.375 = $305.63.

So how much money did you make?

You made 305.63 but spent 223.13, so your profit is $82.50