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You have purchased 150 shares at 10 each. You expect to sell these at 15 each. You only managed to sell 100. Out of your initial purchase price, 400$ were borrowed. Brokerage fee= 2% for the transactions

What is the net income and yield on this transaction?

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  • Do you have any other information such as how long it has been since the purchase or the current price of the shares?
    – Charles Fox
    Commented Oct 19, 2018 at 19:30

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Sounds like a homework problem to me. Here's a hint:

(1) Calculate the net cost of 150 shares (position cost plus brokerage fee)

(2) Calculate the net cost of 100 shares

(3) Determine your cash outlay for 100 shares (excluding margin amount)

(4) Calculate net sale price of 100 shares (proceeds from position less plus brokerage fee)

(5) Income is sale proceeds less cost of that position

(6) Yield is profit over cost (excluding margin component)

If that's not clear, sorry but I can't do it all. Now it's your turn.

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