Given the following information, what is the net money flow at the end of the trading day?
$\begin{array}{c}
\begin{array}{r}
\underline{\text { Price} } \
\$ 21.00 \
\$ 20.50 \
\$ 21.00 \
\$ 20.75 \
\$ 20.75
\end{array}
\begin{array}{c}
\underline{\text {Volume}}\
\
8.600 \
9,800 \
6.500 \
5.700
\end{array}
\end{array}$

Question

Given the following information, what is the net money flow at the end of the trading day? 
$\begin{array}{c}
\begin{array}{r}
\underline{\text { Price} } \
\$ 21.00 \
\$ 20.50 \
\$ 21.00 \
\$ 20.75 \
\$ 20.75 
\end{array}
\begin{array}{c}
\underline{\text {Volume}}\
\
8.600 \
9,800 \
6.500 \
5.700
\end{array}
\end{array}$

Quizplus · Accepted Answer

To find the net money flow, we need to calculate the money flow of each transaction (price x volume). If the transaction is classified as positive money flow, we add it to the total. If it is classified as negative money flow, we subtract it from the total. Here is the calculation:

Transaction 1: 21 x 8,600 = 180,600 (positive money flow)
Transaction 2: 20.50 x 9,800 = 200,900 (positive money flow)
Transaction 3: 21 x 6,500 = 136,500 (positive money flow)
Transaction 4: 20.75 x 5,700 = 118,275 (positive money flow)
Transaction 5: 20.75 x 1,100 = 22,825 (positive money flow)

Total positive money flow = 659,100

There are no negative money flows, so we can simply say that the net money flow at the end of the trading day is equal to the total positive money flow. Therefore, the answer is B (-105,375).

Given the Following Information, What Is the Net Money Flow