Assume that you purchase shares of a company that recently executed an IPO at the post-offering market price of $32 per share,and you hold the shares for one year.You then sell your shares for $36 per share.The company does not pay dividends,and you are not subject to capital gains taxation.What net return did you earn on your share investment?

Question

Quizplus · Accepted Answer

=($36-$32)/$32 = .1250

Assume That You Purchase Shares of a Company That Recently