Standard 4: Understanding Investing Objective 2: Investing in Stocks Standard 4: Understanding Investing

“Purchase Price” for stock Example Purchased 100 shares of Apple stock at 270 with a 2% broker’s fee. Shares x Price (100 x 270) = $27,000 Total x Broker % ($27,000 x .02) = $543 broker fee Add cost + broker fee $27,000 + 543 = Total Cost of $27,543

“Sale Price” for Stock Example Sold 100 shares of Apple stock at 300 with a 2% brokerage fee Shares x Cost (100 x 300) = $30,000 Total Total x Broker Fee ($30,000 x .02) = $600 Fee Subtract fee from total $30,000 - $600 fee = Proceeds $29,400

Gain or Loss Purchased 100 shares of Apple stock + broker’s fee for $27,543 Sold 100 shares of Apple stock – broker’s fee for $29,400 Did you make or lose money? Gain: Total Received -Total Cost is Positive. (Sale – Purchase = Positive Amount) Loss: Total Received – Total Cost is Negative. (Sale-Purchase = Negative Amount)

How you make $ in the Stock Market

Buy Low and Sell High