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Long Shares

Analyzing the risk of long shares
You own 200 shares of XYZ at $35. What is the maximum amount you can lose?
$700
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$750
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$7000
Correct! 200 shares x $35 = $7000
$7500
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You own 100 shares of XYZ at $65 per share. What is your maximum profit?
$65.00
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$650.00
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$6500.00
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Unlimited Profit
Correct! Share ownership theoretically allows you to profit without limit as long as value continues to increase. However, nothing goes up forever.
You own 50 shares XYZ at $50. It is currently trading for $19.02. What is your P/L?
-$309.80
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-$1549.00
Correct! XYZ has dropped by $30.98. 50 shares x (-$30.98) = -$1549; a net loss.
-$1902.00
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-$3098.00
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You own 100 shares XYZ at $20. It is currently trading for $22.54. What is your P/L?
$22.54
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$225.40
Correct! The value of your position has increased by $2.54 per share. $2.54 x 100 shares = $225.40 profit.
$254.00
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$2254.00
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You purchased 10 shares at $5, 10 shares at $10, and 10 shares at $15... What is your break even?
$10
Correct! You spent a total of $300 on 30 shares. Your average cost per share is $10, making this your break even.
$300 ÷ 30 shares = $10 per share
$12
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$150
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$300
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root strategies
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