To calculate the loss incurred when selling shares of stock, you first need to determine the purchase price of the shares, the selling price, and then calculate the total loss based on the number of shares sold. Let’s break it down step by step.
1. Determine the Purchase Price
The shares were originally bought at 13 3/4. To make calculations easier, let’s convert this to decimal form:
13 3/4 = 13.75
2. Determine the Selling Price
The shares were sold at 12. This is already in decimal form, so we can use it as is:
Selling Price = 12
3. Calculate the Loss per Share
Now, we calculate the loss per share by subtracting the selling price from the purchase price:
Loss per Share = Purchase Price – Selling Price
Loss per Share = 13.75 – 12 = 1.75
4. Calculate Total Loss for 50 Shares
To find the total loss incurred from selling 50 shares, multiply the loss per share by the number of shares:
Total Loss = Loss per Share * Number of Shares
Total Loss = 1.75 * 50 = 87.50
Conclusion
The total loss incurred from selling 50 shares of stock that were originally purchased at 13 3/4 and sold at 12 is $87.50.