About Fractional Shares Profit Calculator (Formula)
The Fractional Shares Profit Calculator is a tool designed to help calculate the profit obtained from selling fractional shares of a stock or investment. Fractional shares refer to a situation where an investor owns a portion of a whole share, rather than a complete share.
The calculator utilizes a simple formula to determine the fractional shares profit:
Fractional Shares Profit = (Share Selling Price – Share Purchase Price) * (Fractional Percentage of Share Owned / 100)
Here’s a breakdown of the variables used in the formula:
- Share Selling Price: This represents the price at which the fractional shares are being sold.
- Share Purchase Price: This indicates the price at which the fractional shares were originally purchased.
- Fractional Percentage of Share Owned: This represents the percentage of the whole share that the investor possesses as fractional shares.
To calculate the fractional shares profit, the formula subtracts the share purchase price from the share selling price to determine the price difference. This difference is then multiplied by the fractional percentage of share owned divided by 100. The result is the profit obtained from selling the fractional shares.
By using this calculator, investors can quickly determine the profit they would make from selling their fractional shares, enabling them to make informed decisions about their investments. It simplifies the process and eliminates the need for manual calculations, making it a convenient tool for investors of all levels of experience.