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| alicia gist |
 Posted: Thu Feb 24, 2005 1:05 pm Post subject: Buying shares? Dumb question? |
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Investing Sr. Associate
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| I recently moved some of my $$ from my large cap fund over to my company stock fund. I moved $5,000 and bought the stock at $37.79/share. A friend at work said that I really didn't buy shares, but I bought blocks of shares. Say the stock goes up to $39/share. How do I figure my gain? |
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| eyesandearsjami |
| Posted: Thu Feb 24, 2005 3:08 pm Post subject: |
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Member Of The Month! February
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Alicia,
Is this all of the information you have? For example, where there any transactions fees involved with this purchase? Or did you receive a confirmation that says you purchased a set # of shares?
From what you've written it looks like your friend is right. If there are no other fees involved, you would have purchased roughly 132.31 shares. To find this out I simply divided 5k by the purchase price of $37.79.
So, if your company stock went to $39 per share you would multiply 132.31 by the difference of $39 minus $37.79 which comes to $1.21. Your gain would therefore be $160.09 or a 3.2% return.
Hope this helps,
Jami |
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