Accounting HW Help!!

Hey guys,

I need urgent help for my accounting project! It’s related to stocks…

Ok, so how do you figure out:

-the market per share?
-the number of shares?
-the unrealized gain/loss?

The project is due this Thursday, so I would really appreciate ANY help before that!
Thanks a lotttttt in advance! :slight_smile:

Re: Accounting HW Help!!

^ What information is already given to you ?

Re: Accounting HW Help!!

Umm well I'm supposed to invest in 2 companies. I chose CAL and DAL and invested $50,000 in both..

Airlines ?? Well, you are a brave man/woman ;)

Do you need market price or market cap ? Which website are you using to invest ? They should be able to provide you number of shares (outstanding) and market cap/market price.

Unrealized Gain/Loss -

For example, say you buy stock in Company X at $10 per share, and then shortly afterwards the stock's price plummets to $3 per share, but you do not sell. At this point, you have an unrealized loss on this stock of $7 per share, because the value of your position is $7 dollars less than when you first entered into the position. Let's say the company's fortunes then shift and the share price soars to $18. Since you have still not sold the stock, you'd now have an unrealized gain of $8 per share ($8 above where you first bought in).

Re: Accounting HW Help!!

Lol, I didn't actually invest in them! We're just supposed to pretend I guess, for the project..

I don't know if he's asking for the market price or cap...it just says market per share :S

I'm using Yahoo Finance...what do I do to figure this all out? Is there like a formula for all this??

Thanks a lot for all your help!

Re: Accounting HW Help!!

OK, here is what I would do -

If you go to Yahoo Finance, type CAL in the Get Quotes box.

Last Trade (is the market price) - $ 11.18
Assume number of shares you want to invest is 100
So your total investment is $11.18 *times *100 shares = $ 1,118

What is your investment horizon i.e. how long are you supposed to hold the shares ? Lets say its 24 hours.

So, do the same thing tomorrow (after 24 hrs). Assume the market price tomorrow is $ 12. So your investment will be worth $ 1,200. The unrealized gain will be $ 82.

Lets say the price tomorrow was $ 11. Your investment is worth $ 1,100. The unrealized loss is $ 18.

Re: Accounting HW Help!!

OMG!! Thank you soooooo much!! You're the best! :)

Ok, I just have one more question: the purchase price per share is what I invested right? So it'll be $50,000?

Re: Accounting HW Help!!

Purchase price per share would be the $ 50,000 divided by the number of shares you purchased.

So if you bought 200 shares the purchase price per share would be 50,000/200 = $ 250.

Re: Accounting HW Help!!

Ok, thanks again!

Re: Accounting HW Help!!

No problem. All the best for your project !