The bid price for Sun Microsystems (JAVA)is currently $16.22 and its ask price is $16.23. Your broker charges a commission of $13 per transaction. What are the total costs of buying and
Selling 1,000 shares of JAVA as a percentage of the invested dollars?

Question

Quizplus · Accepted Answer

The total cost of buying 1,000 shares is $13 + (1,000 * $16.23) = $16,246. The total cost of selling 1,000 shares is $13 + (1,000 * $16.22) = $16,236. The total cost of buying and selling 1,000 shares is $26. The total cost of buying and selling 1,000 shares as a percentage of the invested dollars is $26 / $16,246 * 100% = 0.16%.

The Bid Price for Sun Microsystems (JAVA)is Currently $16