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What you will learn
- Check whether a chosen whole-share quantity fits the exercise’s cash balance.
- Track holdings and cash without counting the purchase money twice.
- Distinguish one holding’s price return from the whole practice account’s return.
Write the decision card before calculating
Allow roughly 20 minutes. Write starting cash SEK 750, fictional share A, price SEK 48 and desired quantity 13. Set the rules: whole shares only, no borrowing, and no fees, dividends or taxes. The price stays fixed during the purchase. These are the exercise rules, rather than verified Investiq order settings.
First calculate 13 × 48 = SEK 624. The cost fits the cash balance and leaves 750 − 624 = SEK 126. Write both amounts before continuing. If the cost exceeded SEK 750, the quantity would need to change. This paper model does not allow a negative cash balance to be hidden inside the total.
If the table does not fit, scroll it sideways.
| Decision-card row | Value |
|---|---|
| Starting cash | SEK 750 |
| Price per share | SEK 48 |
| Whole-share quantity | 13 |
| Cost | SEK 624 |
| Cash after purchase | SEK 126 |
A purchase exchanges cash for a holding
Immediately after the purchase, the holding is worth 13 × 48 = SEK 624. Add the remaining SEK 126: the total is still SEK 750. You do not have both the original SEK 750 and the shares. The cost has left the cash balance and become a holding in this model without transaction costs.
The checker can read four rows aloud: quantity, price, holding value and cash. A total of SEK 1,374, obtained by adding the original cash to the holding, counts the purchase money twice. Correct the mistaken row rather than changing only the final answer. Repeat the same check with a different quantity.
A later price changes value, rather than quantity
At the next fictional observation, the price is SEK 45. Quantity remains 13 and cash remains SEK 126. The holding is worth SEK 585 and the account totals SEK 711. The account return is −39 / 750 = −5.2 percent. The holding’s price return is −39 / 624 = −6.25 percent.
Both percentages use the same loss but different starting bases. State whether you mean the account or its holding. No shares have been sold at this step: this is a valuation using the new model price. A real transaction also needs an available price, execution and any relevant costs to be considered.
Use the check to choose the next learning step
Swap roles and ask the person who calculated to explain where the SEK 126 is recorded. Keep the starting card and later valuation on the same sheet. To test the largest permitted whole-share quantity, divide cash by price, then multiply by the nearest lower whole number to confirm the cost.
Investiq’s portfolio guide describes the product’s holdings and cash. Read it before comparing the paper task with the app’s actual terms. This activity does not establish that every model rule, order type or particular budget check is available in the app. Continue with the percentage lesson if the account-versus-holding distinction needs more practice.
Try it yourself
You have SEK 500 of fictional cash and a fixed price of SEK 34. The model allows only whole shares and no negative cash balance. Can you afford 15 shares? What is the largest permitted quantity, and how much cash remains?
Show the solution and explanation
15 shares do not fit. At most 14 fit; they cost SEK 476 and leave SEK 24.
15 × 34 = SEK 510, more than 500. 14 × 34 = SEK 476. The next whole number is too expensive, so 14 is the largest quantity permitted by these rules. Remaining cash is 500 − 476 = SEK 24.
Check your understanding
Should you add the starting cash to the shares’ value after buying?
No. Add the remaining cash. The shares’ purchase cost has already left the cash balance.
Did the share quantity fall when the model price became SEK 45?
No. Quantity is still 13; the value changed.
Practise with virtual money
Try what you just learned in a practice portfolio with virtual money. You don't deposit any real money.
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Sources and examples
The sources support the factual explanations. Calculations and exercises were created for this lesson. Amounts and price changes are invented unless stated otherwise.
This material is educational and does not recommend securities to buy. A simulated result does not guarantee a future result.
