There was an investor who was taking a trip to an area where
he couldn’t see the stock market results. His practice was to invest in
start-up companies and purchased stock to help them get started.
He selected three companies in which to invest. From the
first, A, he purchased 500 shares at $10 per share.
From the second company, B, he purchased 200 shares at $10 ashare.
And from the third company, C, he purchased 100 shares at $10 a share.
When the investor returned, he checked on the value of his
investments. He found that the first company’s, A, stock price had increased
to $50 per share. The investor, impressed, decided to purchase more stock
from company A. The second company's, B, stock had increased to $20 a share, and the third company's, C, stock was still at $10 a share.
So the investor sold his stock in the third company, C, and with the proceeds bought more shares from company A.