SIE - Securities Industry Essentials Exam

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If a customer is long 1000 shares of a stock at an average price of $40 and sells 500 shares at $35; which of the following is the result?

Realized gain of $2500, no unrealized gain
A
Unrealized loss of $2500, realized loss of $500
B
Realized loss of $2500, unrealized gain of $500
C
Realized loss of $2500, unrealized loss of $2500
D

Explanations

He lost $5 per share when he sold 500 shares. That is a $2500 realized loss because he sold it. His remaining shares are still losing $2500; but he hasn't sold them - so the loss is unrealized. Correct answer is ( D )- Realized loss of $2500, unrealized loss of $2500.