slarrys63
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A share of stock in the Lofty Cheese Company is quoted at 25 1/4. Suppose you hold 30 shares of that stock, which you bought at 20 1/4. If you sell your stock at 25 1/4, which one of the following statements would be true?

A: you'll suffer a loss of $15

B: you'll make a profit of $15

C: you'll make a profit of $150

D: you'll suffer a lose if $150

Verified Answer :

W0lf93

Since each share was purchased when it was still quoted at 20 1/4, then when the stock value increases, it gains (25 1/4 - 20 1/4) = $5.00 for each stock.

Since you're to sell 30 shares of your stock, that means you'll be making a profit of (30 x 5 ) = $150.00.

Thus, the answer is C.

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