Problem

An investor bought Company A share (Stock) at securities company 5000 Shares at

price $ 1.0/share. When the price went up to $ 1.1/share , all shares were sold. The
investor got profit $463. At the same securities company the investor also bought
Company B 10000 shares at price $1.5/share . When the price went up to $1.6/share , all
shares were sold. The investor got profit $891. Find purchasing fee and selling fee
respectively charged by the securities company?

Answer.

Formula for Profit of stock trading is :

U = (1-%Fj) x Nx Hjl - (1+%Fb) x N x Hbl

where
U=Profit or Loss
HJ (Selling Price/Harga Jual)= N x Hjl where N=Number of shares and Hjl=Selling
price per share (harga jual perlembar)
Hb (Purchasing Price/Harga beli)= N x Hbl where Hbl=(Purchasing Price/ per share
(harga beli perlembar)
Fj (Selling Fee ) = %Fj x HJ
Fb (Purchasing Fee) = %Fb x Hb

First Step (Establish Linear Simultaneous Equations)

(1) 463 = (1-%Fj) x 5000 x 1.1 - (1+%Fb) x 5000 x 1.0
⇔ 463=5500 - 5500 %Fj -5000 -5000%Fb
⇔ 5500 %Fj +5000%Fb = 37

(2) 891 = (1-%Fj) x 10000 x 1.6 - (1+%Fb) x 10000 x 1.5

⇔ 891=16000 - 16000 %Fj -15000 -15000%Fb
⇔ 16000 %Fj +15000%Fb = 109

Second Step (Find Solution of Linear Simultaneous Equations)

(1) … 5500 %Fj + 5000%Fb = 37 x 3

(2) ….16000 %Fj +15000%Fb = 109 x 1
⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯ -
500 %Fj =2
%Fj = 0.004 =0.4%

(1) … 5500 x 0.4% + 5000%Fb = 37

22 +5000%Fb = 37
5000%Fb = 15
%Fb = 0.003=0.3%
So, the purchasing fee is 0.03% and the selling fee is 0.04%