If you buy 100 shares of stock at $24.57 each and sell them for $31.26 each, what is your percentage gain on the transaction?

To determine the percentage gain on the transaction, we can follow a simple formula:

Percentage Gain = (\frac{(Selling Price - Purchase Price)}{Purchase Price} \times 100)

First, calculate the purchase price for 100 shares:

Purchase Price = Price per share × Number of shares = $24.57 × 100 = $2,457.

Next, calculate the selling price for 100 shares:

Selling Price = Price per share × Number of shares = $31.26 × 100 = $3,126.

Now, find the difference between the selling price and the purchase price:

Gain = Selling Price - Purchase Price = $3,126 - $2,457 = $669.

Now, to find the percentage gain, plug the gain and purchase price into the formula:

Percentage Gain = (\frac{669}{2,457} \times 100)

Calculating this gives:

Percentage Gain ≈ 27.2%.

This result indicates the profit earned as a percentage of the initial investment, demonstrating a gain of approximately 27.2% on the total investment in the shares. This connects to the tendency to evaluate stock trades by realizing how much profit relative to the investment, allowing investors