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News has just broken that the latest Firebolts sold have been recalled due to a malfunction that causes the brooms to fly uncontrollably. The stock has taken a dive and is sitting at $15 per share. Lucius is trying to decide whether to stay the course and hope for a rebound or to get out before he loses more than he already has. If Lucius sells the 200 shares he purchased at $25 per share now, what will his Capital Loss be?

TEACHER NOTE:

Capital Loss = (purchase price per share * number of shares) - (sale price per share * number of shares)

You can also use the Capital Gains formula and know if the figure is a positive number it reflects a capital gain and if it is a negative number, it reflects a capital loss

Capital Gains = (sale price per share * number of shares) - (purchase price per share * number of shares)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92402454

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