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How to Calculate Stock Prices?

  1. Nov 27, 2015 #1
    • Poster has been reminded that all schoolwork-type questions go in HH and work must be shown
    If you invest $10,000 at .50c a stock and cashout when the stock price hits $100, how much would you make?

    If you invest $10,000 at $2.50 a stock and cashout when the stock price hits $125, how much would you make?

    If you invest $10,000 at $10 a stock and cashout when the stock price hits $650, how much would you make?

    And can you explain how to do the math? I have no idea how to figure out the totals.

    Thank you for any help!!
     
  2. jcsd
  3. Nov 27, 2015 #2

    BvU

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    Perhaps it's easier to do it per 'stock' ? You invest 50 c (.50 c seems too cheap ?) and sell for $ 100 so you make $ 99.50 per unit. For $10000 you can buy 20000 shares at 50 c, so then you would make 20000 shares x $ 99.50 /share = 1990000 in your dreams !

    Don't try this at home: if you can't do the math it's much better to stay clear of the stock market ! :smile:
     
  4. Nov 27, 2015 #3
    Thank you for helpin me out. I really appreciate it!
     
  5. Nov 27, 2015 #4
    Isnt the easiest and fastest way to do it like this? $100 divided by .50c = 200 multiplied by $10,000 = $2,000,000
     
  6. Nov 27, 2015 #5

    BvU

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    Yes, but the 2 M isn't earnings: it is earnings + investment. For this example the difference is small, in practice you will need a very very big investment to earn $ 1990000 !
     
  7. Nov 27, 2015 #6
    I wasnt talking about the $2,000,000 total I was talking about the equation itself. I can just include minus $10,000 at the end of what I wrote. I was saying isnt the way I did the equation much simpler and easier to follow than the way you did yours?
     
  8. Nov 27, 2015 #7

    BvU

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    Yes. The mere fact that you asked the question made me tread very carefully. It's really very simple arithmetic either way.
     
  9. Nov 27, 2015 #8

    SteamKing

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    Stocks which sell for less than $1.00 / share are known as 'penny stocks'. These companies are not traded on most of the familiar stock exchanges (which set minimum share prices for a stock to remain listed on the exchange) and are highly speculative.
     
  10. Nov 27, 2015 #9

    BvU

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    In 'general math' and in dreams everything is possible :smile:
     
  11. Nov 27, 2015 #10

    Ray Vickson

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    Do you really mean .5c per stock in the first case? That is 1/2 cent per stock! Did you mean $.5 = 50c per stock?
     
  12. Nov 27, 2015 #11

    BvU

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    From the book answer my money is on the half dollar. A sure bet :smile:

    [edit] it's too late; I'm mixing up threads !!!
     
  13. Nov 27, 2015 #12

    Ray Vickson

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    No: $100 ##\div## .5 c = $20,000. If you mean $100 ##\div## 50c = $200, then that is what you should write.

    Lesson: years ago in a town I lived in at the time, a supermarket published ads in the newspaper announcing a sale price of .5c per lb. on some grocery item (I forget what). I think that somebody must have arrived with a truck, filled it up with the sale item, and given the store $10 (instead of $2000); because that was the advertised price, the store had to honor the announcement. From that time onward the store never, ever made that error again, and nor should you.
     
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