Beginner Investing/Break Even Price



If an investor purchased 100 shares of XYZ for $25.00 with a commission of $10.00 to purchase and sell and another 100 shares of XYZ for $30.00 with $10.00 for the commission to purchase and sell, how does he determine his break even price if he wants to sell the 200 shares?

The first 100 shares is $25.20 break even price. The second is $30.20.

I thank you for your reply.


I am not sure that I understand the question. Your break at whatever price it takes to make your money back.  You spent 2510 + 3010 = 5520.  You would need to sell the shares at a price that would give you (net) sales proceeds of 5520.  ((200 shares X price)- commission to sell)= 5520

Selling 100 at 25.20 and then 100 and 30.20 would give you 5540.  You can subtract 20 for commission on the sale to get to 5520.

I hope this helps.


Beginner Investing

All Answers

Answers by Expert:

Ask Experts


Michael Weiss, CFA


I can answer most questions about investing for beginners


I am the owner of Series 7 Exam Tutor , a financial tutoring business that provides personalized tutoring for the Series 7 Exam, the Series 6 Exam ,the Series 65 Exam, the Series 66 Exam, the Series 63 Exam and the Series 24 Exam . I also offer tutoring for finance courses. For additional information, please visit, Finance Exam Tutor. Prior to launching Series 7 Exam Tutor, I worked in investments for 20 years with the majority of this time focused on investment analysis and portfolio management. I have worked for large companies such as Merrill Lynch and Evergreen Investments and have also worked for smaller firms as well. Throughout my career, I have sought to mentor younger colleagues whenever possible, especially those enrolled in the CFA program. I completed the CFA program in 2002 after passing all three exams on the first try. I also passed the Series 7 Exam with a score of 94%. For additional information about me, you can visit the links below:

CFA Institute and CFA Society of Philadelphia


M.B.A. in Finance & Investments from the Zicklin School of Business at Baruch College and a B.A. in Finance & Economics from the City University of New York Baccalaureate Program.

©2017 All rights reserved.