Take out your stock graph.
What is your stock symbol?
What does this symbol stand for?
and enter your symbol in, and then hit the "Search" key.
You may see Bid and Ask prices, or it may say N/A.
Bid is the selling price, and Ask is the asking price that you
must purchase at.
The Ask price (purchase price) is higher than the Bid price (selling price).
This makes sense since, for example, farmers sell
their products for much less money than we pay for the
products because distributors earn the difference. The stock market
works the same way.
What is your Ask price? (Ignore the "x 100" or similar part of the Ask
price - you want the price per share that comes before this in the Ask price.)
If you don't see an Ask price
then take the Prev Close price and add .125 to it.
Note that the Ask price is a price per share. We will "buy" 100 shares.
But this isn't the total cost, since we must also pay a commission
fee. The following is from e-trade: $9.99
You pay these fees each time you buy or sell.
They may seem high, but standard commission fees
were a couple of hundred dollars before the
advent of internet trading sites.
What is the total cost of purchasing your stock:
Ask price x 100 + 9.99 commission fee? SHOW WORK!
Write the cost on the board.
You will need this info in future labs. Turn it in to me and then work on the rest of the lab.