Fourth Grade

Lana and Jane are arguing about how to calculate the cost of a share of stock and then the gain or loss when they go to sell it. Lana says you multiply the total amount of the shares by the amount of the share of stock to figure out how much you paid for the initial stock investment and then subtract that from the amount the stock is worth now. Jane says you multiply the amount of shares you are purchasing by 100 to get the initial investment and then subtract the amount it is worth now from the initial investment. Who is right? Explain and defend your answer. 

3 comments:

  1. UnknownSeptember 25, 2012 at 9:57 AM

    Jane is right because you multiply the total cost of the investment by 100 and that is how you get the inital investment which they were arguing about.
    KL

    ReplyDelete
    Replies
    1. UnknownSeptember 25, 2012 at 10:04 AM

      Lana is correct because Jane did not account for the price of the share of stock. She only going on the fact that it is 100. Each share is a different price so you have to multiply the amount of the stock by the number of shares you want to purchase.

      Delete
  2. UnknownSeptember 25, 2012 at 10:14 AM

    Jane is correct because you multiply 100 shares to get your initial investment.

    ReplyDelete

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