Your discount brokerage firm charges $7.95 per stock trade. how much money do you need to buy 200 shares of pfizer, inc. (pfe), which trades at $31.40? (round your answer to 2 decimal places.)

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11-04-2019
Business

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Your discount brokerage firm charges $7.95 per stock trade. how much money do you need to buy 200 shares of pfizer, inc. (pfe), which trades at $31.40? (round your answer to 2 decimal places.)

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MrsSeifried MrsSeifried · Answer 1 · 2019-04-11T03:33:55+02:00

Answer: $6,287.95

Explanation: There are two pieces to consider when calculating the cost of a trade. First, you need to calculate the total cost of the stock. Pfizer is trading for $31.40, so the total amount for 200 shares is $6,280. The second piece is what the brokerage firm charges for the trade. In this case it is $7.95. The total for this trade is $6,280 + $7.95, which equals $6,287.95.