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Stock Formulas
formulas and definitions for Chapter 10
14
Mathematics
10/30/2013

Term
 Cost of Stock
Definition
 What you pay for your shares of stock.
Term
 Cost of Stock Formula
Definition
 # shares X Price per share
Term
 Total Paid
Definition
 The total amount paid for your stock purchase including commission.
Term
 Total Paid Formula
Definition
 Cost of Stock + Commission
Term
 Net Sale
Definition
 What you receive for shares sold less commission.
Term
 Net Sale Formula
Definition
 Sale of Stock - Commission Paid
Term
 Profit/Loss on Sale of Stock
Definition
 The amount of your profit or loss for your sale of stock.
Term
 Profit/Loss Formula
Definition
 Net Sale - Total Amount Paid
Term
 Annual Dividend
Definition
 The amount of dividend you receive for each share of stock you purchase.
Term
 Annual Dividend Formula
Definition
 # Shares X Dividend per Share
Term
 Annual Dividend Yield
Definition
 Your % return for each share of stock you purchase.
Term
 Annual Dividend Yield Formula
Definition
 Annual Dividend Per Share / Cost Per Share
Term
 Price Earnings Ratio
Definition
 Measure used to determine whether the market price of a stock is reasonable.
Term
 Price Earnings Ratio Formula
Definition
 Market Price Per Share / EPS
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