1. Investments 12.3
Buying stocks

2. Vocabulary
Stocks- share of ownership in a corporation Shares- The stock of a corporation is partitioned into shares Stock Certificate- proof of ownership in a corporation Stockbroker- a consultant who aids investors in buying and selling of stocks Online broker- takes orders and processes them, but may not be able to give advice Commission- amount paid to the broker Stock table- usually found in newspapers or online and gives valuable information on stocks (refer to page 447 figure 12.1 in textbook)

3. Formulas Needed
Cost of Stock = # of shares × cost per share Total paid = Cost of Stock + Commission Commission = Fee Commission = # of shares × fee per share Commission = Cost of Stock × percent

4. Determine a) the cost of the stock & b) the total paid.
Cread buys 500 shares of Carhartt, inc. He pays $32.90 per share and a commission of $65.00.
Cost of Stock = # of shares × cost per share
Cost of Stock = 500× 32.90
Cost of Stock = $16,450
Total paid = Cost of Stock + Commission
Total paid =
Total paid = $16,515
Private

5. Determine a) the cost of the stock & b) the total paid.
Nick buys 2,500 shares of Browning Co. He pays $62.45 per share and a commission of $0.03 per share.
Cost of Stock = # of shares × cost per share
Cost of Stock = 2500× 62.45
Cost of Stock = $156,125
Total paid = Cost of Stock + Commission
Total paid = ×0.03
Total paid = $156,200
Private

6. Determine a) the cost of the stock & b) the total paid.
Sam buys 520 shares of John Deere & Co. He pays $88.97 per share and a commission of 1.5% of the cost of stock.
Cost of Stock = # of shares × cost per share
Cost of Stock = 520× 88.97
Cost of Stock = $46,264.40
Total paid = Cost of Stock + Commission
Total paid = ×0.015
Total paid = 46,
Total paid = $46,958.37

7. Questions?