How much of a loss does Bob make by selling his shares at a lower price?

Calculating Bob's Loss from Selling Shares

Bob's Loss Calculation: Bob purchased 3,000 shares of a company at $1.25 per share. After the company's announcement of closing some retail stores, the share price dropped to $0.86 per share. Bob decided to sell his shares to minimize loss. To calculate Bob's loss, we need to find the difference between the purchase price and the selling price per share, and then multiply that by the number of shares.

Initial Purchase Price: The total amount Bob paid for the stocks = 3,000 shares × $1.25 per share = $3,750.

Selling Price to Minimize Loss: The total amount Bob sold the stocks for = 3,000 shares × $0.86 per share = $2,580.

Calculating Loss: Bob's overall loss from selling his stocks = Total purchase amount - Total selling amount = $3,750 - $2,580 = $1,170.

Thus, Bob incurred a loss of $1,170 by selling his shares after the price drop.