Stock markets True or false? a. The bid price is always greater than the ask price. b. An investor who wants to sell his stock immediately should enter a limit order. c. The sale of shares by a large investor usually takes place in the primary market. d. Electronic Communications Network refers to the automated ticker tape on the New York Stock Exchange.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 4, Problem 1PS

Stock markets True or false?

a. The bid price is always greater than the ask price.
b. An investor who wants to sell his stock immediately should enter a limit order.
c. The sale of shares by a large investor usually takes place in the primary market.
d. Electronic Communications Network refers to the automated ticker tape on the New York Stock Exchange.

a)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

Bid price is always greater than ask price

Justification:

The given statement is false as ask price will be higher at which the traders are willing to sell. On the other hand, is Person X sells a share of stock he will receive a lower bid price at which the traders wishes to buy the share of stock from him.

Hence, the statement is false.

b)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

An investor who sells the stock immediately should enter a limit order.

Justification:

The investor need to enter the market order.

Hence, the statement is false.

c)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

The sale process of large investor will takes place in primary market.

Justification:

Most of the investors will sell the shares in secondary market instead of primary market.

Hence, the statement is false.

d)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

Electronic Communications Network denotes to the automated ticker tape on the City NY

stock Exchange.

Justification:

Electronic Communications Network refers to trading shares of stock and not automated ticker tape on the City NY stock Exchange.

Hence, the statement is false.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Which of the following characteristics accurately describes the stock market? An active market that determines the price of a firm’s shares A fixed-income market where participants buy and sell debt securities The bid-ask spread in a dealer market represents the profit that a dealer would make on a transaction involving a security. Which of the following statements best describes the bid-ask spread? The difference between the closing price of the security and the opening price of the security on the day of the transaction. The sum of the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it. The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it. Fernando, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Ally, is willing to sell 1,500 shares of the same stock. Unfortunately, Fernando…

Which of the following holds true about the Stock market? a. It is for Purchase and sale of goods. b. It facilitates Purchase and sale of securities continuously c. It is for New issue of Bonds d. It is a Market for New issue of Shares

Which of the following statements about financial markets and securities are true? Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the Philippine Stock Exchange. A corporation acquires new funds only when its securities are sold in the primary market. Money market securities are usually more widely traded than longer-term securities and so tend to be more liquid. All of the choices are true.

Answer 2

Textbook Question

Chapter 4, Problem 1PS

Stock markets True or false?

a. The bid price is always greater than the ask price.
b. An investor who wants to sell his stock immediately should enter a limit order.
c. The sale of shares by a large investor usually takes place in the primary market.
d. Electronic Communications Network refers to the automated ticker tape on the New York Stock Exchange.

a)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

Bid price is always greater than ask price

Justification:

The given statement is false as ask price will be higher at which the traders are willing to sell. On the other hand, is Person X sells a share of stock he will receive a lower bid price at which the traders wishes to buy the share of stock from him.

Hence, the statement is false.

b)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

An investor who sells the stock immediately should enter a limit order.

Justification:

The investor need to enter the market order.

Hence, the statement is false.

c)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

The sale process of large investor will takes place in primary market.

Justification:

Most of the investors will sell the shares in secondary market instead of primary market.

Hence, the statement is false.

d)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

Electronic Communications Network denotes to the automated ticker tape on the City NY

stock Exchange.

Justification:

Electronic Communications Network refers to trading shares of stock and not automated ticker tape on the City NY stock Exchange.

Hence, the statement is false.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 4, Problem 1PS

Stock markets True or false?

a. The bid price is always greater than the ask price.
b. An investor who wants to sell his stock immediately should enter a limit order.
c. The sale of shares by a large investor usually takes place in the primary market.
d. Electronic Communications Network refers to the automated ticker tape on the New York Stock Exchange.

a)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

Bid price is always greater than ask price

Justification:

The given statement is false as ask price will be higher at which the traders are willing to sell. On the other hand, is Person X sells a share of stock he will receive a lower bid price at which the traders wishes to buy the share of stock from him.

Hence, the statement is false.

b)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

An investor who sells the stock immediately should enter a limit order.

Justification:

The investor need to enter the market order.

Hence, the statement is false.

c)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

The sale process of large investor will takes place in primary market.

Justification:

Most of the investors will sell the shares in secondary market instead of primary market.

Hence, the statement is false.

d)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

Electronic Communications Network denotes to the automated ticker tape on the City NY

stock Exchange.

Justification:

Electronic Communications Network refers to trading shares of stock and not automated ticker tape on the City NY stock Exchange.

Hence, the statement is false.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 4, Problem 1PS

Stock markets True or false?

a. The bid price is always greater than the ask price.
b. An investor who wants to sell his stock immediately should enter a limit order.
c. The sale of shares by a large investor usually takes place in the primary market.
d. Electronic Communications Network refers to the automated ticker tape on the New York Stock Exchange.

a)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

Bid price is always greater than ask price

Justification:

The given statement is false as ask price will be higher at which the traders are willing to sell. On the other hand, is Person X sells a share of stock he will receive a lower bid price at which the traders wishes to buy the share of stock from him.

Hence, the statement is false.

b)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

An investor who sells the stock immediately should enter a limit order.

Justification:

The investor need to enter the market order.

Hence, the statement is false.

c)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

The sale process of large investor will takes place in primary market.

Justification:

Most of the investors will sell the shares in secondary market instead of primary market.

Hence, the statement is false.

d)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

Electronic Communications Network denotes to the automated ticker tape on the City NY

stock Exchange.

Justification:

Electronic Communications Network refers to trading shares of stock and not automated ticker tape on the City NY stock Exchange.

Hence, the statement is false.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

a)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

Bid price is always greater than ask price

Justification:

The given statement is false as ask price will be higher at which the traders are willing to sell. On the other hand, is Person X sells a share of stock he will receive a lower bid price at which the traders wishes to buy the share of stock from him.

Hence, the statement is false.

b)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

An investor who sells the stock immediately should enter a limit order.

Justification:

The investor need to enter the market order.

Hence, the statement is false.

c)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

The sale process of large investor will takes place in primary market.

Justification:

Most of the investors will sell the shares in secondary market instead of primary market.

Hence, the statement is false.

d)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

Electronic Communications Network denotes to the automated ticker tape on the City NY

stock Exchange.

Justification:

Electronic Communications Network refers to trading shares of stock and not automated ticker tape on the City NY stock Exchange.

Hence, the statement is false.

Answer 8

a)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

Bid price is always greater than ask price

Justification:

The given statement is false as ask price will be higher at which the traders are willing to sell. On the other hand, is Person X sells a share of stock he will receive a lower bid price at which the traders wishes to buy the share of stock from him.

Hence, the statement is false.

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Summary Introduction

To discuss: Whether the statement is true or false.

Answer 13

Explanation of Solution

Given statement:

Bid price is always greater than ask price

Justification:

The given statement is false as ask price will be higher at which the traders are willing to sell. On the other hand, is Person X sells a share of stock he will receive a lower bid price at which the traders wishes to buy the share of stock from him.

Hence, the statement is false.

Answer 14

b)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

An investor who sells the stock immediately should enter a limit order.

Justification:

The investor need to enter the market order.

Hence, the statement is false.

Answer 15

b)

Expert Solution

Answer 16

b)

Expert Solution

Answer 17

Expert Solution

Answer 18

Summary Introduction

To discuss: Whether the statement is true or false.

Answer 19

Explanation of Solution

Given statement:

An investor who sells the stock immediately should enter a limit order.

Justification:

The investor need to enter the market order.

Hence, the statement is false.

Answer 20

c)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

The sale process of large investor will takes place in primary market.

Justification:

Most of the investors will sell the shares in secondary market instead of primary market.

Hence, the statement is false.

Answer 21

c)

Expert Solution

Answer 22

c)

Expert Solution

Answer 23

Expert Solution

Answer 24

Summary Introduction

To discuss: Whether the statement is true or false.

Answer 25

Explanation of Solution

Given statement:

The sale process of large investor will takes place in primary market.

Justification:

Most of the investors will sell the shares in secondary market instead of primary market.

Hence, the statement is false.

Answer 26

d)

Expert Solution

Summary Introduction

To discuss: Whether the statement is true or false.

Explanation of Solution

Given statement:

Electronic Communications Network denotes to the automated ticker tape on the City NY

stock Exchange.

Justification:

Electronic Communications Network refers to trading shares of stock and not automated ticker tape on the City NY stock Exchange.

Hence, the statement is false.

Answer 27

d)

Expert Solution

Answer 28

d)

Expert Solution

Answer 29

Expert Solution

Answer 30

Summary Introduction

To discuss: Whether the statement is true or false.

Answer 31

Explanation of Solution

Given statement:

Electronic Communications Network denotes to the automated ticker tape on the City NY

stock Exchange.

Justification:

Electronic Communications Network refers to trading shares of stock and not automated ticker tape on the City NY stock Exchange.

Hence, the statement is false.

Answer 32

Ch. 4 - Stock markets True or false? a. The bid price is...Ch. 4 - Stock quotes a. I would like to sell 1000 shares...Ch. 4 - Stock quotes Here is a small part of the order...Ch. 4 - Stock quotes Go to finance.yahoo.com and get...Ch. 4 - Valuation by comparables Look up P/E and P/B...Ch. 4 - Dividend discount model True or false? a. All...Ch. 4 - Dividend discount model Respond briefly to the...Ch. 4 - Dividend discount model Company X is expected to...Ch. 4 - Dividend discount model Company Y does not plow...Ch. 4 - Constant-growth DCF model Company Zs earnings and...

Concept explainers

Videos

Explanation of Solution

Explanation of Solution

Explanation of Solution

Explanation of Solution

Want to see more full solutions like this?

Chapter 4 Solutions