Presentation - Calculating Gain or Loss in Stock Investments.pptx

Presentation - Calculating Gain or Loss in Stock Investments

1. Calculating Gain or Loss in Stock Investments Understanding Stock Investments and Commissions

2. Understanding the essential concepts of investment profitability in stocks Gain: Increase in investment value Loss: Decrease in investment value Gain or Loss

3. To calculate gain or loss in stock investments, it is essential to understand the basic formulas involved. The fundamental equation for determining gain or loss is: Gain or Loss = Selling Price – Purchase Price Total Gain or Loss = (Selling Price – Purchase Price) × Shares This means that the differences calculated using the first formula should be multiplied by the total number of shares involved in the transaction. Understanding Basic Gain and Loss Formulas

4. Step-by-step calculation of buying and selling stock with commissions Bought 200 shares at ₱120 each 1% commission on purchase Sold at ₱135 per share 1% selling commission applied Calculate total gain or loss Mr. Cruz's Example

5. Analyzing Ana's investment in stocks to identify her loss after selling. Purchased 500 shares at ₱250 each 0.75% commission on purchase Sold at ₱230 per share 1% commission on sale Calculated total loss from transactions Ana's Stock Loss

6. Test your understanding with these short computation problems. Problem 1: Calculate gain/loss if you bought 100 shares at ₱150 each and sold for ₱160 each. Problem 2: If you bought 300 shares at ₱80 and sold at ₱75, what is your total loss? Quick Check

7. Definition of Commission Commission is a fee paid to an agent or salesperson for services rendered. It serves as an incentive for sales performance and is typically calculated as a percentage of the total sales made, ensuring that agents are rewarded for their efforts in generating revenue.

8. Formula for Commission

9. A s alesperson earns a 5% commission on total sales. If she sold ₱40,000 worth of products, how much is her commission? Practice Problem

10. A re al estate agent receives ₱60,000 commission on a property sold for ₱2,000,000. What is her commission rate? Practice Problem

11. A car de aler earned ₱15,000 commission at a 3% rate. What was the total value of the car he sold? Practice Problem

12. Agent A earns 4% commission, while Agent B earns 5%. If both sold ₱500,000 worth of houses, how much more did Agent B earn than Agent A? Practice Problem

13. Maria is a real estate agent who earned ₱60,000 in commission for selling a house worth ₱1,200,000.Question: What is her commission rate? Practice Problem

14. A sales agent sells furniture worth ₱250,000. His commission rate is 8%.Question: How much is his commission Practice Problem

15. James earned ₱9,000 as a commission. If his commission rate is 3%,Question: What was his total sales? Practice Problem