Question 1173549: You are considering a hypothetical $1,200 investment in a media company's stock. Your choice is to invest the money all at once or dollar-cost average at the rate of $100 per month for one year. Assume that the company allows you to purchase "fractional" shares of its stock.
If you invested all of the money in January and bought the shares for $12 each, how many shares could you buy?
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! 1200 / 12 = 100 shares if you bought them all at once.
if you bought them with 100 dollars each month, then you would buy 100/12 = 8.333333333..... shares per month.
that would be 100/12 = 50/6 = 25/3 shares each month if you can buy them in fractional form.
if you are allowed to buy by amount of money instead of by number of shares, then 1200 one time up front or 100 dollars each month.
the stock broker will calculate the fractions of shares for you.
the answer to your question, i think, is that you would buy 1200 / 12 = 100 shares if you invested all of the money in january.
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