1. An investor has E£50,000 (Egyptian pound). He deposits E£37,000 into a broker
ID: 1171757 • Letter: 1
Question
1. An investor has E£50,000 (Egyptian pound). He deposits E£37,000 into a brokerage account. He buys 1,000 shares of the Commercial International Bank (CIB) for E£35 per share. One week later, the investor sells the CIB stock for E£37. When he receives his brokerage account statement, he sees that there is a missing item: What belongs in item 4 on this statement?
Price per Share (E Total Number of Shares Account Transaction (E5) Balance (E) Item 1. Deposit 2. CIB purchase 3. CIB sale 4. 5. Balance 35 37 37000 35,000 37,000 37,000 37,000 39,000 1,000 1,000 38,000Explanation / Answer
Item 4 belong to Brokerage charges
which will be equal to 1000 Egyptian Pounds
Balance = Deposit - Purchase + Sales - Brokerage
38000 = 37000-37000+39000 - 1000
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