1. Stocks pp. 400-402 12-3 SECTION

2. Click to edit Master text styles Second level Third level Fourth level Fifth level 2 SECTION Copyright © Glencoe/McGraw-Hill 12-3 Section Objective Solve for: total cost of a stock investment

3. Click to edit Master text styles Second level Third level Fourth level Fifth level 3 SECTION Copyright © Glencoe/McGraw-Hill 12-3 stocks (p. 400) Shares of ownership in a corporation. stock certificate (p. 400) Proof of ownership in a corporation. Key Words to Know

4. Click to edit Master text styles Second level Third level Fourth level Fifth level 4 SECTION Copyright © Glencoe/McGraw-Hill 12-3 Cost of Stock = Number of Shares × Cost per Share Formula 1

5. Click to edit Master text styles Second level Third level Fourth level Fifth level 5 SECTION Copyright © Glencoe/McGraw-Hill 12-3 Total Paid = Cost of Stock + Commission Formula 2

6. Click to edit Master text styles Second level Third level Fourth level Fifth level 6 SECTION Copyright © Glencoe/McGraw-Hill 12-3 The stock market has dropped 20 percent since the last quarter, but the market experts are optimistic. If you were Doucette, what would you do? Life after Working Shifts p. 401

7. Click to edit Master text styles Second level Third level Fourth level Fifth level 7 SECTION Copyright © Glencoe/McGraw-Hill 12-3 Melanie Lambert purchased 100 shares of stock at $106.30 per share. Her Internet online stockbroker charged her a $15.95 commission. What is the total amount that she paid for the stock? Example 1

8. Click to edit Master text styles Second level Third level Fourth level Fifth level 8 SECTION Copyright © Glencoe/McGraw-Hill 12-3 Find the cost of a stock. Number of Shares × Cost per Share 100 × $106.30 = $10,630 Example 1 Answer: Step 1

9. Click to edit Master text styles Second level Third level Fourth level Fifth level 9 SECTION Copyright © Glencoe/McGraw-Hill 12-3 Find the total paid. Cost of Stock + Commission $10,630 + $15.95 = $10,645.95 Example 1 Answer: Step 2

10. Click to edit Master text styles Second level Third level Fourth level Fifth level 10 SECTION Copyright © Glencoe/McGraw-Hill 12-3 500 shares of stock at $51.14 per share. Broker fee is $30 for fewer than 1,000 shares or 2¢ per share for 1,000 or more shares. a. What is the cost of the stock? b. What is the total paid? Practice 1

11. Click to edit Master text styles Second level Third level Fourth level Fifth level 11 SECTION Copyright © Glencoe/McGraw-Hill 12-3 a. $25,570 b. $25,600 Practice 1 Answer

12. Click to edit Master text styles Second level Third level Fourth level Fifth level 12 SECTION Copyright © Glencoe/McGraw-Hill 12-3 250 shares of stock. Cost per share is $35.00. Online commission of $19.95. a. What is the cost of the stock? b. What is the total paid? Practice 2

13. Click to edit Master text styles Second level Third level Fourth level Fifth level 13 SECTION Copyright © Glencoe/McGraw-Hill 12-3 a. $8,750 b. $8,769.95 Practice 2 Answer

14. Stocks 12-3 END OF SECTION