This preview shows page 1. Sign up to view the full content.
Unformatted text preview: tudentsOfferingSupport www.youtube.com/user/StudsOfferingSupport Raising Marks. Raising Money. Raising Roofs.
www.schoolsos.com Students Offering Support: Wilfrid Laurier University The Straight Market Order
Steps to Success:
1. Calculate the purchase price
= #shares x (market price per share at the time of purchase)
2. Calculate the purchase commission
= 2% of the purchase price
3. Calculate the total cost
= purchase price + purchase commission
4. Calculate the sale price
= #shares x (market price per share at the time of sale)
5. Calculate the sale commission
= you 2% of the return on the sale
6. Calculate the total return
= sale price – sale commission
7. Calculate the capital gain (if this # is negative it is a capital loss)
= total return – total cost
8. Calculate the yield
= capital gain ÷ purchase price Problem 1
As a self-proclaimed Facebook junkie, you decide to purchase 1,000 shares of the company
during its Initial Public Offering (IPO). Shares are offered at a price of $38 each. H...
View Full Document
This note was uploaded on 02/07/2014 for the course BU 111 taught by Professor Jessicastockie during the Fall '08 term at Wilfred Laurier University .
- Fall '08