Colin owns 100 shares of RIM stock.He purchased the stock for $100 a share.He sold the stock for $75 a share.The commissions required to buy and sell the stock totaled $60.Assuming that he received no dividends during the time he owned the stock, what is his total profit or loss from this transaction?

Question

Quizplus · Accepted Answer

The total amount Colin paid for the 100 shares was:

100 shares x $100 per share = $10,000

The total amount he received from selling the 100 shares was:

100 shares x $75 per share = $7,500

Colin's total cost for commissions was $60.

His total profit or loss can be calculated as:

Profit/Loss = Sale Price - Purchase Price - Commissions

Profit/Loss = $7,500 - $10,000 - $60

Profit/Loss = -$2,560

Therefore, the correct answer is D, Loss $2,560.

Colin Owns 100 Shares of RIM Stock