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19 October, 16:49

How do you calculate the net profit/loss in a scenario in which an investor bought 200 shares at $10/share, then decided to sell all 200 at $25/share? there's a 2% commission fee for all buy and sell transactions.

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  1. 19 October, 18:29
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    Net is the total received from sale - the amount of purchase - total fees.

    The purchase cost is 200 * 10 * 1.02 = qty * price * commission = $2040

    The proceed are 200 * 25 - (0.02 * 200 * 25) = $4900

    so the profit is 4900 - 2040 = $2860
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