Entrepreneurship and Small Business Management

Stocks

Stock prices are published each day in the business sections of daily newspapers. Prices are usually quoted in eighths of a dollar. When you buy a stock, the total amount you pay for the stock depends on the cost per share, the number of shares you purchase, and the stockholder's commission.

Cost of Stock = Number of Shares x Cost per Share

Total Paid = Cost of Stock + Commission

1.		A stock's price is listed as $37 3/8 per share. How would you write the price in dollars and cents format?
			A)	$37.24
			B)	$37.30
			C)	$37.375
			D)	$37.11
2.		Souly purchased 100 shares of stock at $47 3/8 per share. What was the cost of the stock?
			A)	$4,737.50
			B)	$4,738
			C)	$4,730
			D)	$4,700.38
3.		In problem 2, Souly's stockbroker charged him a $20 commission. What is the total amount he paid for the stock?
			A)	$4,720.38
			B)	$4,750
			C)	$4,757.50
			D)	$4,758
4.		How would you write the price in dollars and cents of a stock whose price is listed as $10 3/4 per share?
			A)	$10.34
			B)	$10.30
			C)	$10.75
			D)	$10.12
5.		What is the cost of 425 shares of stock at $10 3/4 per share?
			A)	$4,394.50
			B)	$4,301
			C)	$439.45
			D)	$4,568.75
6.		Yesterday's stock price listing showed CallyCorp stock at $32 1/4 per share. Today's listing lists the stock for $31 5/8 per share. What is the difference in the stock's price between the days?
			A)	$ 3/8
			B)	$ 5/8
			C)	$ 1/2
			D)	$ 1
7.		Sonora would like to invest $500 in stock. She decides to buy CallyCorp stock. At $31 5/8 per share, how many shares can she buy? (Assume there is no commission charged.)
			A)	15
			B)	16
			C)	158
			D)	22
8.		Telly decides to buy 330 shares of Air Max stock at $56 1/2 per share. He has to pay $75 commission. What is the total he pays?
			A)	$18,645
			B)	$18,720
			C)	$24,750
			D)	$24,806
9.		Lee purchases 250 shares of TRG, Inc. stock at $16 3/4 per share. What is the cost of the stock?
			A)	$4,000
			B)	$4,590.25
			C)	$4,187.50
			D)	$4,085
10.		In question 9, Lee's broker charges a 1.2% commission. How much does Lee pay for commission?
			A)	$49.02
			B)	$502.50
			C)	$55.08
			D)	$50.25
11.		In questions 9 and 10, what is the total Lee pays when he purchases the stock?
			A)	$4,050.25
			B)	$4,236.52
			C)	$4502.50
			D)	$4,237.75
12.		Georgia purchases 140 shares of stock at $26 1/8 per share. What is the cost of the stock?
			A)	$3,657.50
			B)	$3,640
			C)	$3,665.20
			D)	$3,690.42
13.		In problem 12, Georgia's stockbroker charges $80.34 commission. What is the total Georgia pays?
			A)	$3,745.54
			B)	$3737.84
			C)	$3,770.76
			D)	$3800

Hawthorne charges a fee plus commission for stock transactions. Use the following information about Hawthorne Investment Group to answer questions 14-18.

14.		Mika buys 500 shares of stock at $14.375 per share through Hawthorne Investment Group. What is the cost of the stock?
			A)	$7,185
			B)	$7,187.50
			C)	$7,190
			D)	$7,000.25
15.		How much does Hawthorne charge for commission?
			A)	$89.84
			B)	$87.50
			C)	$72.43
			D)	$99.84
16.		What is the total that Mika pays?
			A)	$7,275
			B)	$7,277.34
			C)	$7,327.32
			D)	$7,150.07
17.		One hundred shares of stock cost $3,290. How much does Hawthorne charge in fees and commission for this stock purchase?
			A)	$49.98
			B)	$99.33
			C)	$32.90
			D)	$82.88
18.		What is the total amount paid for the stocks in problem 17?
			A)	$3,389.33
			B)	$3,372.88
			C)	$3,322.90
			D)	$3,394.98
19.		Cheryl pays $711 (without commission) for 24 shares of stock. What is the cost per share?
			A)	$29.625
			B)	$25.75
			C)	$30.125
			D)	$24.625
20.		Colby pays a total of $5,660 for a stock purchase. $120 of that total is for fees and commission. What percent of the total is payment for the broker?
			A)	47%
			B)	5.06%
			C)	2.12%
			D)	1%