INVESTMENTS (LOOSELEAF) W/CONNECT
11th Edition
ISBN: 9781260465945
Author: Bodie
Publisher: MCG
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Question
Chapter 3, Problem 14PS
Summary Introduction
(A)
To determine:
The price at which the order can be executed
Introduction:
Stock stands to be the general term which is taken into consideration for describing the company's ownership certificates. On the other hand share refers to the company's stock certificate. When a share of a particular company is held by an investor, he is known as a shareholder.
Summary Introduction
(B)
To determine:
The price at which the order can be executed
Introduction:
Stock stands to be the general term which is taken into consideration for describing the company's ownership certificates. On the other hand share refers to the company's stock certificate. When a share of a particular company is held by an investor, he is known as a shareholder.
Summary Introduction
(C)
To determine:
Whether the order will get executed, if the limit order to sell at a price of $55.62 is being submitted to the broker
Introduction:
Stock stands to be the general term which is taken into consideration for describing the company's ownership certificates. On the other hand share refers to the company's stock certificate. When a share of a particular company is held by an investor, he is known as a shareholder.
Summary Introduction
(D)
To determine:
Whether the order will get executed, if the limit order for buy at a price of $55.37 is being submitted to the broker
Introduction:
Stock stands to be the general term which is taken into consideration for describing the company's ownership certificates. On the other hand share refers to the company's stock certificate. When a share of a particular company is held by an investor, he is known as a shareholder.
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Students have asked these similar questions
Here is some price information on Fincorp stock. Suppose that Fincorp trades in a dealer market.
Bid Ask
46.54 46.89
a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? (Round your answer to 2 decimal places.)
b. Suppose you have submitted an order to sell at market. At what price will your trade be executed? (Round your answer to 2 decimal places.)
c. Suppose you have submitted a limit order to sell at $47.15. What will happen?
The trade will not be executed
The trade will be executed
d. Suppose you have submitted a limit order to buy at $46.76. What will happen?
The trade will not be executed
The trade will be executed
Here is some price information on Fincorp stock. Suppose that Fincorp trades in a dealer market. Bid Ask 36.33 36.68 Required: Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? Suppose you have submitted an order to sell at market. At what price will your trade be executed? Suppose you have submitted a limit order to sell at $36.76.What will happen? Suppose you have submitted a limit order to buy at $36.61. What will happen?
If you transmit a market buy order to the stock exchange, will you buy at the bid or the ask?
a. Ask
b. Bid
Chapter 3 Solutions
INVESTMENTS (LOOSELEAF) W/CONNECT
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Similar questions
- Suppose your broker charges $0.01 commission per share per trade (i.e. per side, and not round-trip). The exchange charges $0.025 per share per trade for removing liquidity and credits $0.014 per share per trade for adding liquidity. You want to run an electronic market-making strategy in a high-frequency setup. You post a below-market limit order (i.e. to add liquidity) to purchase 1,000 shares of a stock at $13.51 per share and your order is subsequently filled. (You get the credit.) If you buy and sell the share at the same price, what will be your net profit or loss per share in the roundtrip trade if you buy and sell by adding liquidity on both sides?arrow_forwardIf an investor places a _________ order, the stock will be sold if its price falls to the stipulated level. If an investor places a __________ order, the stock will be bought if its price rises above the stipulated level. Group of answer choices stop-loss; stop-buy market; limit stop-buy; stop-loss limit; marketarrow_forwardYou find the following order book on a particular stock. The last trade on the stock was at $66.76. Buy Orders Sell Orders Shares Price Shares Price 250 $66.75 250 $66.78 500 66.74 650 66.79 900 66.73 1,000 66.81 275 66.71 300 66.82 100 66.83 a. If you place a market buy order for 200 shares, at what price will it be filled? (Round your answer to 2 decimal places.) b. If you place a market sell order for 200 shares, at what price will it be filled? (Round your answer to 2 decimal places.) c. Suppose you place a market order to buy 500 shares. At what price will it be filled? Choose the appropriate answer. multiple choice 500 shares at $66.83 250 shares at $66.78 and 250 shares at $66.79 250 shares at $66.83 and 250 shares at $66.82 500 shares at $66.76arrow_forward
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