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# Problem of the day…. - PowerPoint PPT Presentation

Problem of the day…. What is an IPO?. Problem of the day…. The bank returns a check cashed by you because there was insufficient funds to cover the check. The check is called:. Stock Market Basics. Novice Level. Bought 100 Shares x \$10.00 = \$1,000 Sold 100 Shares x \$20.00 = \$2,000

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Presentation Transcript
Problem of the day….

• What is an IPO?

• The bank returns a check cashed by you because there was insufficient funds to cover the check. The check is called:

• Bought 100 Shares x \$10.00 = \$1,000

• Sold 100 Shares x \$20.00 = \$2,000

• \$2,000 - \$1,000 = \$1,000

• You gained \$1,000

• Assuming no commission was taken by the broker

• Bought 155 Shares x \$12.00 = \$1,860

• Sold 155 Shares x \$23.00 = \$3,565

• \$3,565 - \$1860 = \$ 1,705

• You gained \$1,705

• Assuming no commissions

• Bought 2,200 shares x \$20.00 = \$44,000

• Sold 2,200 shares x \$18.00 = \$39,600

• \$39,600 - \$44,000 = - \$4,400

• Loss of \$4,400

• Assuming on commission

• Bought 200 shares x \$20.76 = \$4,152

• Sold 100 shares x \$ 23.67 = \$2,367

• Sold 100 shares x \$19.21 = \$1,921

• \$2,367 + \$1,921 - \$4,152 = \$136

• You gained \$136

• Assuming no commission

• Percentage increase or decrease

• New Number – Old Number / Old Number

• (N – O) / O

• Example:

• \$60.00 original number

• \$70.00 current number

• Calculate percentage increase or decrease:

• (70 – 60) /60 = 10/60 =

• 16.67% gain

• Beginning Balance of \$5,000 in brokerage account

• Don’t add or subtract from principal

• Current Balance of \$4,900

• Calculate return on investment

• (4,900 – 5,000) / 5,000 = -100/5000

• = -2%

Review:

Go back and calculate the return on investment from the four previous problems: (novice to grand master)

• Novice: (2,000 – 1,000)/ 1,000 = 1,000/ 1,000= 100%

• Apprentice: ( 3,565 – 1,860) / 1,860 = 1,705/1,860 = 91.67%

• Master: (39,600 – 44,000) / 44,000 =

• 4,400/44,000 = - 10 %

• Grand master: (2,367 +1,921 – 4,152)/ 4,152 =

• 3.28%

Calculate the return on your investments in our stock market game

Assume no commissions right now