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An investor buys 250 shares at market value of 80 each. How much money is required for the transaction, if the brokerage was 0.5%?
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An investor buys 250 shares at market value of 80 each. How much money...
**Transaction Cost Calculation:**
To calculate the total amount of money required for the transaction, we need to consider the cost of the shares and the brokerage fee.
**Cost of Shares:**
The investor purchases 250 shares at a market value of $80 each.
Cost of shares = Number of shares * Market value per share
= 250 * $80
= $20,000
**Brokerage Fee:**
The brokerage fee is given as 0.5% of the transaction value.
Brokerage fee = (Brokerage rate / 100) * Transaction value
= (0.5 / 100) * $20,000
= $100
**Total Transaction Cost:**
To calculate the total transaction cost, we need to add the cost of shares and the brokerage fee.
Total transaction cost = Cost of shares + Brokerage fee
= $20,000 + $100
= $20,100
Therefore, the investor would require $20,100 for the transaction, considering the brokerage fee of 0.5%.
In summary, the investor would need $20,100 to buy 250 shares at the market value of $80 each, taking into account the brokerage fee of 0.5%.
To calculate the total amount of money required for the transaction, we need to consider the cost of the shares and the brokerage fee.
**Cost of Shares:**
The investor purchases 250 shares at a market value of $80 each.
Cost of shares = Number of shares * Market value per share
= 250 * $80
= $20,000
**Brokerage Fee:**
The brokerage fee is given as 0.5% of the transaction value.
Brokerage fee = (Brokerage rate / 100) * Transaction value
= (0.5 / 100) * $20,000
= $100
**Total Transaction Cost:**
To calculate the total transaction cost, we need to add the cost of shares and the brokerage fee.
Total transaction cost = Cost of shares + Brokerage fee
= $20,000 + $100
= $20,100
Therefore, the investor would require $20,100 for the transaction, considering the brokerage fee of 0.5%.
In summary, the investor would need $20,100 to buy 250 shares at the market value of $80 each, taking into account the brokerage fee of 0.5%.
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An investor buys 250 shares at market value of 80 each. How much money...
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An investor buys 250 shares at market value of 80 each. How much money is required for the transaction, if the brokerage was 0.5%?
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An investor buys 250 shares at market value of 80 each. How much money is required for the transaction, if the brokerage was 0.5%? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about An investor buys 250 shares at market value of 80 each. How much money is required for the transaction, if the brokerage was 0.5%? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An investor buys 250 shares at market value of 80 each. How much money is required for the transaction, if the brokerage was 0.5%?.
An investor buys 250 shares at market value of 80 each. How much money is required for the transaction, if the brokerage was 0.5%? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about An investor buys 250 shares at market value of 80 each. How much money is required for the transaction, if the brokerage was 0.5%? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An investor buys 250 shares at market value of 80 each. How much money is required for the transaction, if the brokerage was 0.5%?.
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