How much will be received from the sale of 10 shares of stock, at the following prices, allowing for the broker's commission? 7. 1307 8. 1111 9. 739 10. 69/1/ 11. 141 12. 177 13. An investor bought 100 shares of National Ice at 237. Find the cost including brokerage. WRITTEN EXERCISE Estimate the cost of the following stock, including brokerage: 1. 10 shares at 431 2. 35 shares at 223 3. 75 shares at 1601 4. 80 shares at 102 5. 110 shares at 32 6. 250 shares at 1043 Also the amount received for the following stock, deducting brokerage: 1. A broker sells for me 85 shares of beet sugar stock at 38. After deducting his brokerage, how much does he send me? 2. How much must be paid for 1200 shares of Central Leather at 987? 3. Mr. M. sold 75 shares of Kennecott Copper at 47. How much did he receive for them? 4. Find the cost of 2500 shares of Lackawanna Steel at 987. 5. An investor sold 120 shares of Mexican Petroleum at 101. What was his return from the sale? 6. If Mo. Pacific is 244, how much will 1250 shares cost? 7. 940 shares of Columbia Gas were bought at 411. Tell the total cost. 8. A speculator bought 100 shares of stock at 911⁄2 and sold it at 951. How much did he pay in brokerage? How much did he gain on the deal? If brokerage is charged for both buying and selling, compute the gain or loss in the following stock transactions: 19. If a man buys 320 shares of White Motors at 46% and sells at 481, does he lose on the operation? 20. Find how much a broker should remit to a customer after selling for him 345 shares of Brown Shoe at 713. 21. An investor paid $7756.25, including brokerage, for 50 shares of railroad stock. At what price was it selling? 22. For 125 shares of stock, a man paid, including brokerage, $6562.50. Find how much he paid per share. 23. After paying his broker, an investor received from the sale of Cuban Sugar stock at 931, $5602.50. How many shares did he sell? 24. When Tobacco Products is selling at 52%, how many shares can be bought for $3692.50? Calculate the number of shares that can be bought for: Bonds. If the biscuit company wished to enlarge its business by erecting factories in ten more cities, it could obtain the money required by issuing and selling bonds. A bond is a written or printed promise, usually printed, to pay a certain sum at a specified time when the bond matures, and to pay a fixed rate of interest on the face value at regular times. Generally the bond bears small detachable slips or interest coupons, each a promise to pay the stated interest at the stated period. Bonds are than stocks. usually a safer investment If the bonds and the interest are not paid when due, the bondholders may compel the sale of the property of the corporation to get back their loans. The interest on the bonds must be paid before the dividends are shared among the stockholders. In this way the profits on shares of stock depend on the earnings of a company, while the earnings of bonds, on their face or par value, are always guaranteed. Bonds are usually issued for $500 or $1000. The prices of bonds are quoted with reference to $100 of value. A quotation of $112 means that every $100 of par value is worth $112. A $1000 bond would sell at $1120. Government Bonds. Bonds are issued by the national government and by states, counties, cities, and towns when they wish to borrow money. These are not secured by mortgage. U. S. 3's, 1918-1928, means United States government bonds paying 3% interest due 1928, payment of the bond being optional on any interest date after 1918. War bonds are those issued by a government to provide money for war expenses. WRITTEN PROBLEMS 1. If Pacific Gas 5's are quoted at 88%, how much would five $1000 bonds cost, including brokerage? 2. What annual income would be realized from $25,000 worth of 31% bonds? 3. U. S. bonds, paying 3% interest, are selling at 1041. Find the cost of 8 bonds. 4. An investor sold 45 Central Leather 5's at 1001. How much did he receive for the sale? 5. Reckon the loss to an investor who bought N. Y. Central 6's at 1063 and sold them at 1011. 6. How many bonds, City of Tokio 5's at 761, can be bought for $6743? 7. Mr. M. R. Harrison received $13,005 from the sale of Consolidated Gas bonds at 108. How many shares did he have in the company? Rate of Income on Bonds. If a 6% bond is bought at 149%, what is the rate of income on the investment? Bond incomes, like stock dividends, are always based on the par value of the bond. The cost of $100 worth of bonds is: $149.87+$.12, or $150 The income on $100 worth of bonds is: 6% of $100, or $6 The rate of income is $6÷$150, or 4%. |