Are Your Investment Fees Bleeding You Dry?

Topic: Flat Transaction Fees

Question: You decide to manage your $10,000 yourself, and open a brokerage account. The provider charges you $10 for every buy or sell you make.

You have two particular stocks you like, so buy both and invest $5,000 in each. They both go up 10% across the next 12 months, and you sell them both at year’s end.

How much money do you have after cashing out and accounting for fees?

Answers:

1. $10,990
2. $10,978
3. $10,960
4. $10,958