How to Calculate Stock Gain

Compute the cost basis for the stock trade. Cost basis consists of the original (purchase) price of the stock plus all fees and commissions paid for the purchase and sale of the stock. For example, if you bought 100 shares of a stock at $10/share ($1,000) and paid fees of $10 when you bought the stock and $12 to sell it, your cost basis is $1,000 plus $10 plus $12 for a total of $1,022.
Calculate the total proceeds. Your total proceeds include the money received from selling the stock plus the cash value of dividends received while you owned the shares. For instance, if you sold the 100 shares from Step 1 for $15/share ($1,500) and received a total of $50 in dividend income during the time you held the shares, your total proceeds are $1,500 plus $50, or $1,550.
Calculate stock gain or loss. Subtract the cost basis from total proceeds. If your cost basis is $1,022 (Step 1) and total proceeds are $1,550 (Step 2) your stock gain is $1,550 minus $1,022, which equals $528. If you get a negative number (meaning the cost basis is greater than total proceeds) you had a loss rather than a gain.
Figure your percentage gain or loss. It’s usually most useful to compare percentage gain or loss to see how well different investments have done. To convert stock gain into percentage stock gain, divide the stock gain by the cost basis and multiply by 100. In the example above, you would divide $528 (stock gain) by $1,022 (cost basis) and multiply the result by 100 to get a percentage stock gain of 51.7 percent.

How to Invest in Microsoft Stock

Open a brokerage account if you do not have one. Alternatively, you can invest 'directly' via Microsoft's transfer agent. Either way, you will need an account which you can use to purchase Microsoft stock from (see Resources below).
Deposit funds in your new account, or if using an existing account, verify that you have sufficient funds to complete your purchase.
Decide how many shares you want purchase, and under what conditions. If you want to buy Microsoft stock today without regard to its current price, you need a market order. If you want to buy only if the price is a certain amount you need a stop or limit order.
Give the order. Whether online, through a broker, or as part of your application, you must instruct the agent to purchase your shares. You must specify the quantity of Microsoft shares you would like to purchase, the type of order to execute (market, limit, stop), and any time limits on the order (Good Til Close or Good Until Canceled).
Verify proper execution of order. Review your trade confirmation to ensure that your order was executed as you instructed.

How to Read Stock Charts

Print out a sample stock chart to examine (see 'Additional Resources,' below). Stock charts can be set up on a daily, weekly or long-term format, but they all follow the same basic plan. Start at the top where you will see the stock symbol and date of the chart. Also at the top are the day's high, low, and closing prices and the volume of shares traded.
Look just below the top line of information. You will see an entry that says MA(30), MA (60) or some other number. This is the moving average. It is the average price of the stock over recent past. The number in parentheses tells you how many days the moving average covers. At the very bottom of the chart there should be a bar graph. This gives you the volume of shares traded each day the chart covers.
Examine the main graph between the top and the volume bar graph at the bottom. Each day's trading is usually represented by a short bar or 'candlestick.' The top of the bar indicates the high for that day and the bottom the low. If there is a graph line passing through these bars, it indicates the closing price.
Notice which way the graph of the stock price is pointed. If it is headed toward the upper right corner, the stock is in an upward trend. If it's pointed at the bottom right, it is in a downward trend. Sometimes the graph doesn't seem to be moving one way or the other, and traders call this a period of consolidation.
Understand the function of a stock chart. The point is to spot trends early so you can buy early in an upward trend and sell early in a downward trend. Traders use a number of indicators to do this. For example, look for price supports. A price support is a price below which the stock rarely drops. When it approaches the price support, it's likely to reverse the downward trend and start moving up. A price resistance is the same thing in reverse: a price the stock falls short of. If it gets close, the stock price tends to reverse direction and decline.

How to Buy Chrysler Stock (5 Steps)

Establish an account with a stock brokerage company or an investment firm that has the ability to purchase American Depository Receipts (ADR), the American equivalent of foreign stocks. Deposit the required amount of funds into your account.
Determine the number of shares of Fiat stock you wish to purchase. Check the current price per share. Fiat stock trades on the Italian stock exchange of Fiat ADRs trade over-the-counter in the United States as Fiat SPA under the symbol FIATY.
Contact your investment broker and instruct him to enter a Buy order which may be At The Market or you may designate the price you wish to pay per share, which may be lower than the current market price.
Instruct your broker whether you wish to take possession of your stock certificates or if you wish to keep the stock in street name. Keeping the stock in street name provides more security in that you do not have to store your certificates and it makes it more convenient should you decide to sell your shares at a future date.
Continue to watch the major news outlets for breaking stories regarding Chrysler's emergence from bankruptcy. Eventually the U.S. Treasury will sell its stake in the company which may create an opportunity for individual investors to purchase shares. The company may also choose to become a public company again through an initial public offering, or Fiat may decide to spin the company off if it does not perform up to expectation, which may also present an opportunity for purchasing stock in Chrysler.

How to Buy Toyota Stock (8 Steps)

Research Toyota stock. Pull up a chart and most recent news articles. The ticker symbol for Toyota is TM (NYSE---TOYOTA MTR CP ADS). If you have a broker, request analyst reports. See Resources for a link to Yahoo! Finance research on Toyota.
Review the definition of an ADS. According to InvestorWords, an ADS is, 'A U.S. dollar-denominated equity share of a foreign-based company available for purchase on an American stock exchange.' ADS shares are usually issued by a bank. Essentially, these are international stock certificates.
Determine if you want a broker (face to face) or an online broker account. Do you need to be able to reach someone or do you prefer a text? If you are looking to make a trade at a discounted rate, finding an online brokerage is key. E-trade and Ameritrade are two reputable online firms.
Request an application or fill out an online application. You will be required to send or wire funds if you open the account online.
Determine how much you want to invest in Toyota at the given price. If you want to invest $100,000 and Toyota is selling for $100 you can buy 1000 shares, disregarding transaction costs. That is, divide the amount you wish to invest by the current price of the the Toyota ADS. This is an estimate of the amount of shares you will be purchasing at the current price.
Make a Buy Order. Follow the instructions to make a purchase (buy) order if online or call up a representative to help walk you through it. You will need to have the ticker symbol (TM), amount of shares you wish to purchase, the price you would like to purchase the shares at, and the length of time you would like the order to remain outstanding ('good until' date).
Buy mutual funds. Another way to buy Toyota stock without actively managing it is to buy mutual funds with Toyota ADS holdings. The largest holders of Toyota are Fidelity Diversified, Fidelity Overseas Fund, and Fidelity Blue Chip Growth Fund. Franklin Templeton VIP TR---Foreign Securities Fund also owns a significant share.
Request or print out the confirmation on the 'good until' date, the number of shares and the price.

How to Read Volume on a Stock Chart

Start with the information that appears across the top of the chart. The first items are the date the chart refers to along with the name and ticker symbol of the stock. Next, you'll find price information, giving the day's high, low and closing figures for the stock. Along with this, you'll read the volume on a stock chart. This is the daily volume of shares traded. There's usually one more piece of information listed, called the moving average. This is indicated by the letters MA followed by a number in parentheses and a price. This is the average price the stock traded over the number of days indicated by the number in parentheses.
Look at the rest of the stock chart. You will see two graphs, one in the middle of the page and a bar graph across the bottom. The one in the middle will consist of a line graph with the line bracketed by a bar (also called a candlestick) for each day the chart covers. This is really three graphs in one. Those bars don't refer to the day's volume but to the price range for the stock each day. The top of each bar or candlestick shows the daily high, and the bottom shows the low. The line graph itself shows the closing price.
Examine the bar graph at the very bottom of the page. This graph records the volume of shares traded for each day the chart covers. The height of the bar indicates the number of shares traded. Use the scale (usually located on the far left) to determine how many shares the height of each bar represents.
Learn how to read volume on stock charts in the context of the other information you see on the chart. Changes in the volume of trading can be very informative. For example, if you see an increasing number of shares being traded and the stock is in an upward trend, it indicates that investors are bidding up the stock price. An experienced trader will watch for a drop in that volume that may signal the upward climb in prices is reaching its peak.

How to Calculate Treasury Stock Transactions

Determine the number of shares and the price per share at which your company repurchased its stock. For example, assume your company repurchased 500 shares of stock at $5 per share.
Multiply the number of shares by the price per share to calculate the repurchase cost. For example, multiply 500 by $5, which equals $2,500.
Increase your treasury stock account and reduce your cash account in your accounting records by the amount of the repurchase cost. For example, increase your treasury stock account by $2,500, and reduce your cash account balance by $2,500.



Multiply the number of shares of treasury stock you resold by the price per share at which you resold them. Then increase your cash account by that amount in your accounting records. For example, if you resold 250 shares for $6 per share, multiply 250 by $6, which equals $1,500. Then increase your cash account by $1,500.
Multiply the number of shares you resold by the price per share at which you initially repurchased them. Then reduce your treasury stock account by that amount in your accounting records. For example, if you initially repurchased the 250 shares for $5 per share, multiply 250 by $5, which equals $1,250. Then decrease your treasury stock account by $1,250.
Subtract the amount for which you initially repurchased the shares from the amount you received from reselling them to determine your profit. Then increase your paid-in-capital from treasury stock account by that amount. For example, subtract $1,250 from $1,500, which equals $250. Then increase your paid-in-capital account by $250.



Multiply the number of shares of treasury stock you resold by the price per share at which you resold them that is lower than the initial repurchase price. Then increase your cash account balance by that amount. For example, if you resold 250 shares for $4 per share, multiply 250 by $4, which equals $1,000. Then increase your cash account balance by $1,000.
Multiply the number of shares you resold by the price per share at which you initially repurchased them. Then decrease your treasury stock account balance by that amount in your accounting records. For example, if you initially repurchased the 250 shares for $5 per share, multiply 250 by $5, which equals $1,250. Then decrease your treasury stock account balance by $1,250.
Subtract the amount for which you resold the shares from the amount for which you originally repurchased them to determine your loss. Then decrease your paid-in-capital from treasury stock account by that amount. For example, subtract $1,000 from $1,250, which equals a $250 loss. Then decrease your paid-in-capital account by $250.

How to Read Stock Prices (6 Steps)

Look up the symbol of the company you are interested in on sites like Yahoo's Finance page, eTrade and MSN Money. Use this symbol to locate the stock price for that company on a finance website.
Find the number labeled 'Last Trade.' This number indicates the last price at which shares of the stock were bought or sold, and it will give you a good idea of the price at which experts value the stock.
Locate the time labeled 'Trade Time.' This indicates the time the last trade occurred.
Locate the number labeled 'Change.' This number measures, in dollars, a stock price's change for that day.
Compare the number labeled 'Volume' to the number under 'Average Volume.' This shows how many stocks have changed hands that day compared to the average over an indicated period.
Look at the current price. This is the current established value of a share; the current price multiplied by the total number of shares is equal to the current judged value of an organization.

How to Transfer Stock After Death (4 Steps)

Determine how the stock was registered. The different registrations are Individual Single Owner, Transfer On Death, Joint Tenant with Right of Survivorship and Joint Tenants in Common. Shares can also be placed in a trust. Knowing how the shares are registered will determine how much effort it will take to transfer them.
Secure a transfer of stock ownership form and fill it out completely. Of course, for accounts that are not jointly owned, the estate must be probated before the transfer process can take place. For Transfer On Death accounts, there is no probate needed and they do not have to be included in a will.
Obtain a Medallion Signature Guarantee if one is needed. In some situations, such as when there is over a certain quantity of shares, such a guarantee is needed. This can be obtained from a bank that participates in the Medallion Stamp program. This program guarantees the signature on stock certificates. A notary stamp is not a substitute for the Medallion Stamp.
Complete an Inheritance Tax Waiver if the state requires one. Some states may require this waiver and some may not.

How to Buy Stock with ShareBuilder (8 Steps)

Log in to the ShareBuilder website (sharebuilder.com). If you don't have a username, then you need to register. You'll need to provide your Social Security number because earnings have to be reported to the Internal Revenue Service. ShareBuilder also verifies that you aren't a professional trader.
Select the 'Trade' tab. Then click 'Trade Now.'
Select if you want to buy or sell stock. Enter the stock symbol or look it up using the 'Find Symbol' link if you don't know it. Enter how many shares of the stock you wish to purchase.
Select the type of trade you want to perform. You can select:
Market, which is a trade that happens now;
Limit, which happens once a trigger has been reached (which you enter); or
Stop-Loss, which happens once a stock drops below a certain price (which you enter).
Select your funding source. If you have already have money in your account, then you can leave it alone. If you want to add money, then click the 'Express Funding' radio button.
Click 'Next.' If you selected 'Express Funding,' you'll be prompted for your bank information like routing and account numbers.
Confirm the order and then wait for it to post. You can view your open orders by navigating to the 'Accounts' tab and clicking the 'View Orders' link.
Do your research before purchasing a stock. The tools are available on the website. If you have several thousand dollars in your account, you can trade with Margins, which means that you can borrow ShareBuilder's money to trade with at a low interest rate.

How to Obtain a Stock Certificate (3 Steps)

Ask your broker to get the stock certificate on your behalf. This is the easiest way to get a stock certificate. No matter what type of broker you have an account with--online broker or full-service broker--you can request a physical stock certificate at an additional fee. Check with your broker for details about the process as well as the fee you will have to pay.
Contact the company in which you own shares directly. If you purchased the shares directly from the company, then you can contact them for a physical stock certificate. If you cannot locate or contact the company directly, you may visit its state of incorporation for information.
Order the stock certificate through a transfer agent. Most companies that issue shares to the public have a transfer agent to handle the company's securities. You can find the name of the company's transfer agent in the company's annual report. You can visit the U.S. Securities and Exchange Commission to get the annual report of any company listed on the stock exchange.

How to Issue a Stock Certificate

A stock certificate represents proof of ownership or investment in a corporate financial entity. All forms of corporations, including the limited liability corporations (LLC), partnership, including limited liability (LLP), and limited partnership (LLP), should receive a certificate. An LLC certificate is called a membership certificate. The LLP and LP are called partnership certificates. A stock certificate proves ownership and thus should be carefully held by the investor.
Review the number of authorized corporate shares. This material is available in the articles of incorporation. It may also be found through the public records of the Secretary of State in the state of issuance. Issue shares for less than half of all the authorized shares so that additional members added in the future do not require a new authorization of shares by existing shareholders.
Calculate the percentage ownership of each shareholder. Allocate the appropriate number of shares based on the percentage ownership and the number of shares to be issued. For example, a shareholder owns 10 percent of a recently formed company. There are 200 shares authorized and 50 shares to be issued. The shareholder will receive stock certificates for five shares.
Each stock certificate should include the name and number of shares of the stockholder. The certificates, readily available online or in stationery stores, should include a certificate number so changes in share ownership can be easily transacted. Never change the number of shares on a certificate. A purchase should result in additional certificates being issued or the old certificate being retired and a new certificate created.
A listing of all shareholder information, including name, address, shares held and certificate numbers, should be entered into the articles of incorporation. Another copy should be kept in a separate place where it can be quickly accessed by the secretary of the company. A certificate should be sent by certified mail to each shareholder.

How to Calculate Net Income Based on Stock Price

Visit any financial website that gives stock information and find a company’s P/E ratio, price per share and number of shares outstanding, which is information that a financial website provides for all public companies. For example, assume a company’s P/E ratio is 12, its price per share is $20 and it has 1 million shares outstanding.
Substitute the values into the P/E ratio formula: P/E ratio = price per share/(net income/shares outstanding). In this example, substitute the values to get 12 = $20/(net income/1 million).
Multiply both sides of the equation by the right side’s denominator. In this example, multiply both sides by (net income/1 million) to get 12 x (net income/1 million) = $20.
Divide the company’s P/E ratio by its total shares outstanding. In this example, divide 12 by 1 million to get 0.000012. This leaves 0.000012 x net income = $20.
Divide the company’s stock price per share by your result to calculate its net income over the past 12 months. In this example, divide $20 by 0.000012 to get approximately $1.7 million in net income over the past 12 months.

How to Find the Average Price of Common Stock

Determine the purchase prices for the common stock and the quantity of stock purchased at particular prices. For example, assume you purchased 1,000 shares of stock in Company A at $5 per share, 1,500 shares at $4 per share and 2,500 shares at $10 per share.
Multiply the purchase prices by the quantity purchased and add. Continuing the example, (1,000 x $5) + (1,500 x $4) + (2,500 x $10) = $5,000 + $6,000 + $25,000 = $36,000
Add the total number of shares purchased. Continuing the example, 1,000 + 1,500 + 2,500 = 5,000 shares.
Divide the total cost of the shares by the total number of shares: $36,000/5,000 = $7.20. This is the average price of the common stock.

How to Cash Out Your ESOP Stock

Look at your most recent ESOP Individual Benefit Statement and review your current share holding. Consult with your most recent company financial statement to find the share value. Some companies provide a separate statement just for the ESOP, where the fair value of the stock shares is determined by an independent firm.
Once you know what you expect to receive from selling your shares, consult your Summary Plan Description (SPD) and, if available, employee ESOP handbook. These documents will discuss who you need to contact to sell your ESOP shares. If this is not available, contact your company's human resources representative.
With your statement and expected value in hand, call your ESOP representative. This person, who may be in your human resource department or an outside management company, will initiate your sale transaction. Verify that your holding and share value match, or exceed, your most recent statement with the representative.
Your representative will take care of the administrative needs of the sale. You will likely have to sign forms accepting the terms of the sale. Once the transaction is complete, you will receive a check for the value of your sold shares.

Stock Certificate Instructions

Obtain a blank corporate stock certificate. Find this in your Articles of Incorporation Book or through computer templates.
Fill out the front of the stock certificate with the company name and address. If the certificate was obtained from your incorporation book, this should already be printed.
Fill in the name and address of the person purchasing the stock with the number of shares they are buying.
Have two corporate officers sign the stock certificate.
Emboss the certificate in the indicated area for the corporate seal. The corporate seal should be with your incorporation book. It is a type of stamp created specifically for your corporation.
Log the stock certificate number located in the upper right corner into the corporate ledger. Include the name and number of shares purchased and the price. This officially tracks stock purchases in private companies.

How to Buy Canadian Bank Stock (3 Steps)

Do your research. While most large Canadian banks are strong, many have different strengths in different markets and in different parts of the country. Consider whether the bank is focused entirely on Canada or has an international reach. Determine if the stock is traded on the American Market, either as common shares or as an American Depository Receipt,(ADR). Only you and your broker can determine which bank's stock meets your investment objectives.
Buy the bank's stock on an American Market. Buying a Canadian Bank's stock using its American listing ensures that the American dollar is being used and prevents financial complications arising from foreign ownership. Determine if the stock is common stock or an ADR. While ADRs trade like regular stock, they may have different rights and responsibilities than common stock. To buy the stock, call your broker or use your brokerage's online stock trading website. Relay to your brokerage the stock's ticker, the amount of shares you wish to purchase, and any additional market instructions, such as a specific share price or the time of day to purchase the equity. Await your broker's confirmation to ensure the trade is complete.
Buy the stock on a Canadian Market. Buying a Canadian Bank's stock on the Canadian Market may allow you to take advantage of currency fluctuations. If your brokerage allows for trading on Canadian markets, provide the ticker symbol, as it is listed on the foreign exchange, the amount of shares you wish to purchase, and any trading instructions. Await confirmation from your broker to ensure the trade succeeded.