Joanne Blower owns 200 shares of Corel Corporation stock.She purchased the stock for $22 a share.She sold her stock for $28 a share.The commissions required to buy and sell her stock totaled $180.Assuming that she received no dividends during the time she owned the stock, what is her total profit from this transaction?

Question

Quizplus · Accepted Answer

To find the profit, we need to first find the total cost of buying and selling the stock.
Joanne bought 200 shares at $22 a share, so her total cost was:
$22 x 200 = $4,400
The commission for buying and selling was $180, so her total cost was:
$4,400 + $180 = $4,580
Joanne sold her 200 shares at $28 a share, so she received:
$28 x 200 = $5,600
Her profit would be the amount she received from selling the stock minus the total cost of buying and selling the stock:
$5,600 - $4,580 = $1,020
Therefore, her total profit from this transaction is $1,020, which is Option D.

Joanne Blower Owns 200 Shares of Corel Corporation Stock