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Calculating returns on stocks purchased with/without margin

You purchase 500 shares of 2nd Chance Co stock on margin at a price of $53. Your broker requires you to deposit $11,000.
Suppose you sell the stock at a price of $62, what is your return? What would your return have been had you purchased the stock without margin? What if the stock price is $44 when you sell the stock?

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When the stock is sold for $62
Profit =(62-53)*500=$4500
Return = 4500/11000=40.91%
If ...

Solution Summary

Solution describes the steps for calculating return if shares are purchased with or without margin.