The Wall Street Investor
An investor trading through a discount stock broker that charges $10.00 Dollars per transaction bought 200 shares of Vola Tile Corporation at $50.00 Dollars per share. The stock quickly increased in value by 50%, but then lost 40% of its value. The investor sold the stock. How much money did the investor gain or lose?
The cost of 200 shares at $50.00 Dollars each is $10,000.00 Dollars.
The 50% gain on $10,000 is $5,000, making the new total $15,000.00 Dollars.
The 40% loss on $15,000 is $6,000, reducing the total amount to $9,000.00 Dollars.
This is a $1000.00 Dollar loss, plus $10 Dollars for the Buy transaction, and $10 Dollars for the Sell transaction.
The investor lost a total of $1020.00 Dollars.
It seems counterintuitive that the investor should lose money when the percentage of the loss is less than the percentage of the gain. However, the percentage of the loss is calculated on a bigger amount than the percentage of the gain.
Im sorry but your answer is incorrect. Here is the real solution:
Cost of Shares = $10,000
Transaction amt = $10
Investment = $10,010
When calculating real-time dollars, you must include the $10 in your % of increase/decrease.
Hence =
$10,010 + 50% = $15,015
$15,015 – 40% = $9,009
To sell the shares, you need to subract an additional $10 for transaction fees.
= $9.009 – $10 = $8,999
Actual Loss = $10,010 – $8,999 = $1,011
Dat investor got played homeboi. Rasdawg out \m/
Your Answer
More puzzles to try-
Detective Needed
Shauna was killed one Sunday morning. The police know who they are going to arrest from this bit of information: ...Read More »Place the Matchsticks Puzzle
Can you place six matchsticks in a manner that each of the matchsticks is in touch with the other five ...Read More »Car winning puzzle
There are 3 boxes, exactly one of the box has a car. You can keep the car if you ...Read More »A Farmer, a Wolf, A Goat, and a Cabbage
A farmer went to a market and bought a wolf, a goat, and a cabbage. On his way home, the ...Read More »The Car Murder
A husband and his wife were driving in a convertible. Suddenly, the husband kills the wife with a knife and ...Read More »Man shoots himself between his eyes puzzle
A man walks into his bathroom and shoots himself right between the eyes using the real gun with real bullets. ...Read More »Give the boy a Escape Plan
The picture above depicts a man handing from a tree branch with many different ways to die 1. a Snake ...Read More »See through me
Through me, you see through things…. What am i ?Read More »What is it?
Having some, you want more. But when you have too much of it you feel bored. Everyone people wants it, ...Read More »Fox, Chicken and corn river crossing popular puzzle
A man lives in a small house with a farm as his back garden and has a river beside his ...Read More »Medicine Distribution Riddle
A man has three sick children. he has a 24-ounce bottle of medicine and needs to give each child eight ...Read More »How was the woman able to read
A woman was reading in the basement when her husband, thinking the basement was empty, turned off the light. The ...Read More »With two skins
When it is filled it can point the way, When it is empty nothing moves, it has two skins, one ...Read More »Decode The Riddle
Decode below three cipher riddles 26 L of the A 7 D of the W 1000 Y in a MRead More »Three things which have eyes yet they cannot see riddle
Which three things which have eyes yet they cannot seeRead More »Who am I?
I have no voice yet I speak to you, I tell of all things in the world that people do. ...Read More »Peacefully rest, on a tree or the floor, In certain countries, I’m left at the door, If you’ve never seen me, you’re poor or you’re blind, The very best of me, come from a behind. What am I?
Peacefully rest, on a tree or the floor, In certain countries, I’m left at the door, If you’ve never seen ...Read More »Plane behind Car
John was piloting a plane behind a car but was never able to overtake it. Why?Read More »Maximum count puzzle
A fast food restaurant sells chicken in orders of 6, 9, and 20. What is the largest number of pieces ...Read More »How did he find out?
There are three Chinese guys sleeping in a hotel room. Someone paints their faces with black color during the night. ...Read More »