During 2023, John Miller purchased 150 shares of common stock issued by Logan Development Corporation for 12,000 dollars including commission. Later in the same year, Joh sold the shares for 13,100 dollars after commission.

Profit on this stock transaction

Percentage return on investment

To calculate the profit and the percentage return on investment for John Miller's stock transaction, we can follow these steps:

### 1. **Calculate the Profit:**
   - **Cost of Purchase:** $12,000
   - **Sale Proceeds:** $13,100
   - **Profit:** Sale Proceeds - Cost of Purchase

\[
\text{Profit} = 13,100 - 12,000 = 1,100 \text{ dollars}
\]

### 2. **Calculate the Percentage Return on Investment:**
   - **Formula:** 

\[
\text{Percentage Return} = \left(\frac{\text{Profit}}{\text{Cost of Purchase}}\right) \times 100
\]

\[
\text{Percentage Return} = \left(\frac{1,100}{12,000}\right) \times 100 = 9.17\%
\]

### **Results:**
- **Profit on this stock transaction:** $1,100
- **Percentage return on investment:** 9.17%

Would you like more details or have any questions about these calculations?

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Here are some related questions:
1. How does commission affect the profit in stock transactions?
2. What factors should be considered when calculating the percentage return on investment?
3. What are the tax implications of earning a profit on stock transactions?
4. How can one calculate the breakeven price in stock trading?
5. How does the time period of holding stocks impact the return on investment?

**Tip:** Always include transaction costs like commissions when calculating the true profit from an investment.

Learn how to calculate the profit and percentage return on investment for stock transactions using a detailed example of John Miller's purchase and sale of shares. Understand the formulas and steps involved in determining profit and percentage return. Suitable for individuals interested in financial mathematics and stock trading.

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