+ Post New Thread
Results 1 to 5 of 5
General Chat Thread, Share Prices in General; Can anyone help me (mathematicians) calculate and understand how buying and selling stock effects the profit, i'll explain below: I ...
  1. #1

    Join Date
    Apr 2006
    Location
    UK
    Posts
    939
    Thank Post
    39
    Thanked 70 Times in 54 Posts
    Rep Power
    29

    Share Prices

    Can anyone help me (mathematicians) calculate and understand how buying and selling stock effects the profit, i'll explain below:

    I buy 100 shares @ $15 per share, $1500 = This costs me 997.30 GBP at an exchange rate of 1.52315 with 12.50 transaction fee.

    I sell my 100 shares @ %17.75 per share, $1775 = This gives me 1053.06 at an exchange rate of 1.66579 with 12.50 transaction fee.

    So profit of about 50.00?

    But I don't understand it all, I made $275 and the exchange rate at 1.66? Should i get more?

  2. #2

    elsiegee40's Avatar
    Join Date
    Jan 2007
    Location
    Kent
    Posts
    10,709
    Thank Post
    1,784
    Thanked 2,170 Times in 1,605 Posts
    Rep Power
    770
    $1775 @ 1.66579 = 1065.56

    $1500 @ 1.52315 = 984.80

    1065.56-984.80 = 80.76 profit

    Subtract 2 lots of 12.50 charges leaves you with:

    55.76... nearer the 50 mark
    Last edited by elsiegee40; 4th November 2008 at 11:07 AM. Reason: Correcting the maths (not far out, but enough :) )

  3. Thanks to elsiegee40 from:

    danIT (4th November 2008)

  4. #3
    Netman's Avatar
    Join Date
    Jul 2005
    Location
    56.343515, -2.804118
    Posts
    911
    Thank Post
    367
    Thanked 190 Times in 143 Posts
    Rep Power
    54
    When you bought, the dollar was stronger against the pound than when you sold - if the exchange rate had stayed the same, you would have got the full value of the increase in share prices. Even better, if you had bought @ 1.66 and sold @ 1.50 you would have made even more.

    You ideally want to buy when the dollar is weak (eg 2.00) and sell when it is stronger (eg 1.58) so if you buy 100 worth of dollars you get $200, then sell them again at 1.58 (todays rate) and you get 126 back - you've made 26.
    You were unlucky and it happened the other way around for you...

  5. Thanks to Netman from:

    danIT (4th November 2008)

  6. #4
    apeo's Avatar
    Join Date
    Sep 2005
    Location
    Lost
    Posts
    1,612
    Thank Post
    95
    Thanked 115 Times in 111 Posts
    Rep Power
    42
    I believe you also have to declare it as additional income so the grubby tax man can have his slice too...

  7. #5

    Join Date
    Apr 2006
    Location
    UK
    Posts
    939
    Thank Post
    39
    Thanked 70 Times in 54 Posts
    Rep Power
    29
    Yeah I think you have to declare it as part of capital gains?

    I have attached a spreadsheet which could help Newbies in the future, or if you just fancy a dabble.

    Needless to say if I had held my nerve until yesterday I'd be taking home 470 quid!
    Attached Files Attached Files

SHARE:
+ Post New Thread

Similar Threads

  1. Energy Prices
    By cookie_monster in forum General Chat
    Replies: 7
    Last Post: 12th June 2008, 01:03 PM
  2. [For Sale] Prices
    By plexer in forum Classified Adverts
    Replies: 1
    Last Post: 7th May 2008, 02:53 PM
  3. Exchange prices
    By KWestos in forum Wireless Networks
    Replies: 7
    Last Post: 22nd January 2008, 08:49 PM
  4. Apple prices...
    By hobbit in forum Hardware
    Replies: 15
    Last Post: 13th August 2007, 01:37 PM
  5. Classroom Management prices
    By zag in forum Network and Classroom Management
    Replies: 11
    Last Post: 28th June 2007, 10:02 PM

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •