Steve placed an order with his broker to purchase 500


Steve placed an order with his broker to purchase 500 shares of each of three IPOs that are being released this month. Each IPO has an offer price of $20 a share. The number of shares allocated to Steve, along with the closing stock price at the end of the first day of trading for each stock, are as follows: (Hint: Return = (Value of stocks at end of first trading day – cost of purchasing the stocks) / Cost of purchasing the stocks.)

Stock               Shares Allocated         Closing Market Price, Day 1

    A                             500                              $18.80

    B                             100                              $26.40

    C                             300                              $19.70

What is Steve's total return on these three stocks as of the end of the first day of trading?

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Financial Management: Steve placed an order with his broker to purchase 500
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