# Beginner Investing/Break Even Price

Question
Hello:

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.

Kenneth,

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.

Michael

Beginner Investing

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#### Michael Weiss, CFA

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