Charles just sold 500 shares of stock A for $ 12,000. In addition, he just sold 600 shares of stock A for $ 6,000. Charles had paid $ 20 per share for all his shares of stock A. What amount of loss will he have, assuming both sales were on stocks held for more than one year?
Answer to relevant QuestionsCarlo and Rita’s daughter just celebrated her 16th birthday and Carlo and Rita realize they have accumulated only half the money they will need for their daughter’s college education. With college just two years away, ...Tammy has $ 3,500 that she wants to invest in stock. She believes she can earn a 12% annual return. What would be the value of Tammy’s investment in 10 years if she is able to achieve her goal? The Sampsons are considering investing in an IPO of a high tech firm, since they have heard that the return on IPOs can be very high. Advise the Sampsons on this course of action. What is a short sale? When would this strategy be used? What is buying a stock on margin? What may happen if the value of the stock bought on margin declines? What are the advantages to investors and brokerage firms when stocks are bought on margin?
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