[MOVED] Stock market: percentage gain after stock split

[keithman123]

Hello, I was wondering if anyone knew how to find out your percentage gain in a stock after it has gone through a 2 for 1 split.

If you bought 1000 shares of the stock at 8$ and the day before the split the stock traded at $41.10. Day 2 you have 2000 shares and is now trading at $22.00.

Is it 450% ?

Probably a very easy question, thank you.

 

[stapel]

Are you trying to find the increase over your purchase price ($8000) or over your just-before-the-split price ($41100)? How did you arrive at your answer?

Thank you.

Eliz.

 

[keithman123]

I am trying to find the increase over my purchase price post-split. Since the split was 2 for 1 I just took the price post-split 22$ and doubled it to 44$...and I just kept the share count the same ( 1000 ). I am not sure if that is correct though. Hope this help, thanks.

 

[stapel]

I am trying to find the increase over my purchase price post-split.

To find the percentage increase, I would think that the total value would be used. What was the total value at purchase? What is the total value now? What is the difference? What percentage is this of the original value?

I am not sure if that is correct though.

Did your book and/or class present some other method?

Thank you.

Eliz.

 

[Denis]

Looks like 41.10 went up to 44.00, so a .0705596... gain, or 7% rounded.

But if you're looking at 8 going up to 44 (or 4 to 22), then gain = 550%
(8 times 5.5 = 44)