Scott placed an order with his broker to purchase 1,000 shares of each of three IPOs that are being released this month.Each IPO has an offer price of $24 a share.The number of shares allocated to Scott along with the closing stock price at the end of the first day of trading for each stock,are as follows: What is Scott's total profit or loss on these three stocks as of the end of the first day of trading for each stock?

Question

Scott placed an order with his broker to purchase 1,000 shares of each of three IPOs that are being released this month.Each IPO has an offer price of $24 a share.The number of shares allocated to Scott along with the closing stock price at the end of the first day of trading for each stock,are as follows:  What is Scott's total profit or loss on these three stocks as of the end of the first day of trading for each stock?

Quizplus · Accepted Answer

Profit = 1,000($22.50 - $24) + 200($28.70 - $24) + 500($25.10 - $24) = -$10

Scott Placed an Order with His Broker to Purchase 1,000