Buying stocks

[Kaitlyn]

Assum I buy stock ABC @ $30/share from Quest Trade.

So assuming I wanted to invest $5,010 I could get 167 shares, right?

so in that case it would be best to go their 4.95 options and pay $4.95, right?

if in 1 month it jumps to $40/share and I sell, I would get $6680, right?

so my profit is (6680 - 5010) - 4.95 = 1665.05

did I do anything wrong?

[pitz]

Assum I buy stock ABC @ $30/share from Quest Trade.

So assuming I wanted to invest $5,010 I could get 167 shares, right?


No, only 166 shares, because you have to pay commission on the purchase ($4.95 with Questrade). If you order 167 shares, your account will have a negative balance, or your trade will be rejected.


so in that case it would be best to go their 4.95 options and pay $4.95, right?
if in 1 month it jumps to $40/share and I sell, I would get $6680, right?
so my profit is (6680 - 5010) - 4.95 = 1665.05
did I do anything wrong?

You need to subtract the commission to sell as well.

Also, the stock might pay a dividend while you own it, which is also a component of your profit (or netted against your loss).

[B0000rt]

I believe one option only covers 100 shares.