Enter the share selling price ($), the share purchase price ($), and the fractional percentage of share owned (%) into the calculator to determine the Fractional Shares Profit.
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Fractional Shares Profit Formula
The following formula is used to calculate the Fractional Shares Profit.
FSP = (SSP - SPP) * F/100
- Where FSP is the Fractional Shares Profit ($)
- SSP is the share selling price ($)
- SPP is the share purchase price ($)
- F is the fractional percentage of share owned (%)
To calculate a fractional shares profit, subtract the purchase price from the sale price, the multiply by the fractional percentage.
How to Calculate Fractional Shares Profit?
The following example problems outline how to calculate Fractional Shares Profit.
Example Problem #1
- First, determine the share selling price ($). In this example, the share selling price ($) is given as 100 .
- Next, determine the share purchase price ($). For this problem, the share purchase price ($) is given as 50 .
- Next, determine the fractional percentage of share owned (%). In this case, the fractional percentage of share owned (%) is found to be 60.
- Finally, calculate the Fractional Shares Profit using the formula above:
FSP = (SSP – SPP) * F/100
Inserting the values from above yields:
FSP = (100 – 50) * 60/100 = 30 ($)
Example Problem #2
The variables needed for this problem are provided below:
share selling price ($) = 200
share purchase price ($) = 30
fractional percentage of share owned (%) = 50
Entering these values and solving gives:
FSP = (200 – 30) * 50/100 = 85 ($)
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Now, let's delve into the concepts related to the article on Fractional Shares Profit and the associated calculators:
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Share Selling Price (SSP):
- Definition: The price at which a share is sold in the market.
- Formula: SSP is denoted by "$" in the article, and it is a crucial parameter in calculating Fractional Shares Profit.
-
Share Purchase Price (SPP):
- Definition: The price at which a share is initially bought.
- Formula: SPP is denoted by "$" in the article and is essential for determining the cost basis of the investment.
-
Fractional Percentage of Share Owned (F):
- Definition: The percentage of ownership in a share, expressed in fractions.
- Formula: F is represented as a percentage in the article and is a key factor in the Fractional Shares Profit formula.
-
Fractional Shares Profit (FSP):
- Definition: The profit or loss obtained from the sale of fractional shares.
- Formula: FSP is calculated using the formula: FSP = (SSP - SPP) * F/100. It represents the monetary gain or loss resulting from the difference between the selling and purchase prices.
-
Profit Calculators:
- Definition: Tools used for calculating various aspects of profit in the stock market.
- Types: The article mentions different profit calculators such as Average Profit Calculator, Annual Profit Calculator, Stock Calculator, and Cash Flow Per Share Calculator.
-
Cash Flow Per Share:
- Definition: A financial metric that represents the amount of cash generated by a company per outstanding share.
- Calculator: The article references a Cash Flow Per Share Calculator, indicating its relevance in evaluating a company's financial performance.
Understanding these concepts is crucial for investors and financial analysts to make informed decisions, assess the profitability of investments, and manage their portfolios effectively. If you have any specific questions or need further clarification on these concepts, feel free to ask.
