INV - Stock Transactions Lesson
Stock Transactions
Introduction
Stocks can be the most profitable investment, especially short-term, but they also hold a high risk! There are many options and the value of the stock can fluctuate daily. Many times, investors work through a stockbroker who will help them make decisions about which stocks to buy and which to sell. The Stock Market Crash in 1929 led to the Great Depression in the 1930’s. So, the stock market has a big effect on the economy and the pockets of its investors!
October 29, 1929, or Black Tuesday, witnessed thousands of people racing to Wall Street discount brokerages and markets to sell their stocks. Prices plummeted throughout the day, eventually leading to a complete stock market crash.
Practice
Work through the following tutorial and answer the questions. There is a hint available for each question if you need help. View the full solution to check your answers!
Broker Fees
A stockbroker is a person who gives advice to investors on which stocks to buy or sell. They can charge a flat fee per trade or a percentage of the money spent on the transaction.
Shares must be purchased through a licensed stockbroker. There are discount brokers who still charge a fee but do not offer advice. Their fees are usually cheaper.
Practice
Work through the following tutorial and answer the questions. There is a hint available for each question if you need help. View the full solution to check your answers!
If you found any of these problems challenging, here is a video that will go over the answers.
Please note: For the first example for Investors A and B: the Net Proceeds should = 1352.50, not 1452.50.
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