P6.2 An investor deposits $20 000 into a new brokerage account. The investor buys 1000 Tipco shares

Question:

P6.2 An investor deposits $20 000 into a new brokerage account. The investor buys 1000 Tipco shares for $19 per share. Two weeks later, the investor sells the Tipco shares for $20 per share.

When the investor receives his brokerage account statement, he sees that there is a balance of

$20 900 in his account:

Price per Total Account Item Number Share Transaction Balance 1. Deposit $20 000 $20 000 2. Tipco purchase 1000 shares $19 ($19 000) $20 000 3. Tipco sale 1000 shares $20 $20 000 $21 000 4.

5. Balance $20 900 What belongs in item 4 on this statement?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals Of Investing

ISBN: 9781442532885

3rd Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott Smart, Roger Juchau, Donald Ross, Sue Wright

Question Posted: