1. Selling Stocks & Bonds
Lesson 7.5

2. Selling Stocks
7.5a

3. Stocks are constantly being bought and sold
Stocks are constantly being bought and sold. The result can be a profit or a loss.
Profit = Make Money
Loss = Lose Money

4. Find net sale of Stock…
Net Sale =
Amt. of Sale
- Commission
Find Profit…
Profit =
Net Sale
- Total Paid
Find Loss…
Loss =
Total Paid
- Net Sale

5. Amt. of Sale - Commission = 33.50(90) – 32.54 = $2,982.46
You had paid $3, for 90 shares of stock. You sold the stock at $33.50 per share and had to paid a sales commission of $32.54.
Find the net sale.
Find profit or loss
Net Sale =
Amt. of Sale - Commission
= 33.50(90) – 32.54
= $2,982.46
Loss =
Total Paid – Net Sale
= 3, – 2,982.46
= $ loss

6. Amt. of Sale - Commission = 51.52(125) – 17.50 = $6,422.50
You had paid $5, for 125 shares of Wal-Mart stock. You sold the stock at $51.52 per share and had to paid a sales commission of $17.50.
Find the net sale.
Find profit or loss
Net Sale =
Amt. of Sale - Commission
= 51.52(125) – 17.50
= $6,422.50
Profit =
Net Sale – Total Paid
= 6, – 5,975.40
= $ profit

7. Bonds
7.5b

8. Some corporations and governments raise money by issuing bonds
Some corporations and governments raise money by issuing bonds. These bonds are IOU’s saying you will be paid back your amount plus interest.
Invest in bonds
Part owner in stocks

9. Find Bond Cost…
Bond Cost =
Face Value
* Percent
Find Annual Interest…
Annual Interest =
Face Value
* Interest Rate
Find Annual Yield…
Annual Interest
Annual Yield =
Bond Cost

10. Face Value x Interest Rate = 2,000(.065) = $130
You bought $2000 bond at the quoted price of The bond paid interest at a rate of 6.5%.
Find the annual interest.
Find the bond cost.
Find the annual yield.
Ann. Int. =
Face Value x Interest Rate
= 2,000(.065)
= $130
Bond Cost =
Face Value x Percent
= 2000(0.915)
= $1830
Annual Yield =
= 7.1%

11. Face Value x Interest Rate = 1,500(.085) = $127.50
You bought $1500 bond at the quoted price of 85.5%. The bond paid interest at a rate of 8.5%.
Find the annual interest.
Find the bond cost.
Find the annual yield.
Ann. Int. =
Face Value x Interest Rate
= 1,500(.085)
= $127.50
Bond Cost =
Face Value x Percent
= 2000(0.855)
= $
Annual Yield =
= 9.94%

12. 7.5: Selling Stocks and Bonds
Questions
Summarize your notes
Homework
Worksheet