Asked by ballsax hudini on Jun 14, 2024
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Assume a differential rate 12.5 cents for odd lot sales and purchases. Brian purchased 160 shares of PTG stock at $20. Commission charges were $0.20 per share. Compute the total purchase costs.
Differential Rate
A variable rate that applies to a specific portion of a loan or deposit balance, often used to encourage higher balances with better rates.
Commission Charges
Fees levied by a brokerage for conducting transactions on behalf of a client, often determined as a percentage of the transaction value.
Total Purchase Costs
The aggregate amount of money spent on acquiring an asset, including the purchase price and all associated fees and expenses.
- Estimate the complete cost entailed in the purchase of shares, accounting for commissions.
- Understand the effect of differential rates on odd lot sales and purchases.
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Learning Objectives
- Estimate the complete cost entailed in the purchase of shares, accounting for commissions.
- Understand the effect of differential rates on odd lot sales and purchases.