the buy-in was 100 shares x $510/share = $51,000
commissions could be as much as 0.02 x 51,000 = $1,020
Sell out commissions 100 x 520 x 0.02 = $1,040
Total commissions = $1040 + $1020 = $2060
the gain on the shares was only $10/share or a total of $1000
Even if the commission fee was just 1% of the total transactions ( a distinct possibility) the "investor" would still have lost money overall.
Trade fees and commissions. Any fee over $8 per trade is really dumb. His gross profit is $1000, less two trades at $16, for a net profit of $984.
Ask your teacher to explain the loss!
Jack apparently thought that his Stock Broker provided brokerage services "for nothing"! LOL!
The only thing I can think of would be brokerage commission is figured into your gains and losses.
Jack bought 100 shares of AAPL at $510 on the Nasdaq and sold them for $520 after 6 months. Jack was surprised to find out he made a capital loss on these shares. How would this happen?
