Buy and Sell Stocks All Variants in DSA Java - Time & Space Complexity

Time Complexity: Buy and Sell Stocks All Variants

O(n)

Understanding Time Complexity

We analyze how the time needed to find the best buy and sell days grows as the list of stock prices grows.

We want to know how the number of price checks changes when we have more days.

Scenario Under Consideration

Analyze the time complexity of the following code snippet.

public int maxProfit(int[] prices) {
    int minPrice = Integer.MAX_VALUE;
    int maxProfit = 0;
    for (int price : prices) {
        if (price < minPrice) {
            minPrice = price;
        } else if (price - minPrice > maxProfit) {
            maxProfit = price - minPrice;
        }
    }
    return maxProfit;
}
    

This code finds the maximum profit from buying and selling once by scanning prices once.

Identify Repeating Operations

Identify the loops, recursion, array traversals that repeat.

• Primary operation: One loop through the prices array.
• How many times: Exactly once for each price (n times).

How Execution Grows With Input

As the number of days (prices) increases, the number of checks grows directly with it.

Input Size (n)	Approx. Operations
10	10 checks
100	100 checks
1000	1000 checks

Pattern observation: The work grows in a straight line with input size.

Final Time Complexity

Time Complexity: O(n)

This means the time to find the best buy and sell days grows directly with the number of days.

Common Mistake

[X] Wrong: "We need to check every pair of days to find max profit, so it must be O(n²)."

[OK] Correct: This code smartly tracks the lowest price so far and calculates profit in one pass, avoiding nested loops.

Interview Connect

Understanding this pattern shows you can optimize by avoiding unnecessary repeated checks, a key skill in coding interviews.

Self-Check

"What if we wanted to allow multiple buy and sell transactions? How would the time complexity change?"

Practice

1. What is the main goal when solving the Buy and Sell Stocks problem?

easy

A. Minimize the number of transactions made

B. Find the day with the highest stock price

C. Maximize the profit by choosing the best days to buy and sell stocks

D. Calculate the average stock price over all days

Solution

1. Step 1: Understand the problem goal

   The problem asks to maximize profit by buying low and selling high on different days.

2. Step 2: Identify the correct objective

   Maximizing profit means choosing the best buy and sell days, not minimizing transactions or finding averages.

3. Final Answer:

   Maximize the profit by choosing the best days to buy and sell stocks -> Option C

4. Quick Check:

   Goal = Maximize profit [OK]

Hint: Focus on profit difference between buy and sell days [OK]

Common Mistakes:

• Confusing profit maximization with minimizing transactions
• Thinking the goal is to find highest price day only
• Ignoring the buy day before sell day order

2. Which of the following Java code snippets correctly initializes an array of stock prices for 5 days?

easy

A. int[] prices = {7, 1, 5, 3, 6};

B. int prices = [7, 1, 5, 3, 6];

C. int[] prices = (7, 1, 5, 3, 6);

D. int prices[] = 7, 1, 5, 3, 6;

Solution

1. Step 1: Check Java array initialization syntax

   Java arrays are initialized with curly braces {} and type declaration with [] after type.

2. Step 2: Validate each option

   Parentheses () are invalid, square brackets [] for values are invalid, missing braces {} and improper assignment are invalid. int[] prices = {7, 1, 5, 3, 6}; uses correct syntax.

3. Final Answer:

   int[] prices = {7, 1, 5, 3, 6}; -> Option A

4. Quick Check:

   Correct array syntax = int[] prices = {7, 1, 5, 3, 6}; [OK]

Hint: Use curly braces {} for array values in Java [OK]

Common Mistakes:

• Using square brackets [] for values instead of curly braces
• Missing type[] before variable name
• Using parentheses () instead of braces

3. What is the output of the following Java code that finds max profit with one transaction?

int[] prices = {7, 1, 5, 3, 6, 4};
int minPrice = Integer.MAX_VALUE;
int maxProfit = 0;
for (int price : prices) {
    if (price < minPrice) minPrice = price;
    else if (price - minPrice > maxProfit) maxProfit = price - minPrice;
}
System.out.println(maxProfit);

medium

A. 5

B. 6

C. 4

D. 7

Solution

1. Step 1: Track minimum price and max profit during iteration

   Prices: 7,1,5,3,6,4. minPrice updates to 7 then 1. maxProfit updates when price - minPrice is greater.

2. Step 2: Calculate max profit step-by-step

   At price=5, profit=5-1=4; maxProfit=4. At price=6, profit=6-1=5; maxProfit=5. At price=4, profit=4-1=3; maxProfit stays 5.

3. Final Answer:

   5 -> Option A

4. Quick Check:

   Max profit = 6 - 1 = 5 [OK]

Hint: Track min price and update max profit on the fly [OK]

Common Mistakes:

• Confusing max profit with max price
• Not updating minPrice correctly
• Calculating profit without checking minPrice

4. Identify the error in this Java code snippet that attempts to calculate max profit with multiple transactions:

int maxProfit = 0;
for (int i = 1; i < prices.length; i++) {
    if (prices[i] > prices[i - 1])
        maxProfit += prices[i] - prices[i - 1];
    else
        i++;
}
System.out.println(maxProfit);

medium

A. Loop should start from i = 0

B. Missing initialization of maxProfit

C. Using prices[i] instead of prices[i-1] in calculation

D. Incorrect increment of loop variable inside else block

Solution

1. Step 1: Analyze loop increment and conditions

   The loop increments i each iteration, but inside else block it increments i again causing skipping elements.

2. Step 2: Identify why extra increment causes error

   Extra i++ skips days, missing some profit opportunities and causing incorrect result.

3. Final Answer:

   Incorrect increment of loop variable inside else block -> Option D

4. Quick Check:

   Loop variable increment only once per iteration [OK]

Hint: Avoid changing loop variable inside loop body [OK]

Common Mistakes:

• Incrementing loop variable twice causing skips
• Starting loop from wrong index
• Confusing price indices in calculation

5. Given an array of stock prices, how would you modify the algorithm to find the maximum profit with at most two transactions? Choose the best approach.

hard

A. Buy on the lowest price day and sell on the highest price day only.

B. Use two passes: first pass calculates max profit up to each day, second pass calculates max profit from each day to end, then combine.

C. Use a single pass and sum all positive differences between consecutive days.

D. Sort the prices array and pick the two largest differences.

Solution

1. Step 1: Understand the two transaction constraint

   At most two transactions means we can buy and sell twice, but transactions cannot overlap.

2. Step 2: Use two-pass approach for max profit calculation

   First pass calculates max profit from day 0 to i, second pass calculates max profit from i to end. Combining these gives max profit with two transactions.

3. Final Answer:

   Use two passes: first pass calculates max profit up to each day, second pass calculates max profit from each day to end, then combine. -> Option B

4. Quick Check:

   Two-pass method = Use two passes: first pass calculates max profit up to each day, second pass calculates max profit from each day to end, then combine. [OK]

Hint: Split problem into two single-transaction profits [OK]

Common Mistakes:

• Sorting prices loses day order information
• Summing all positive differences allows unlimited transactions
• Ignoring transaction count limit