1.suppose that author kessel places an order to buy 100 shares of Google. explai
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Question
1.suppose that author kessel places an order to buy 100 shares of Google. explain how the order will be processed if it's a market order. would it make any difference if it had been a limit order? explain. 2.using a resource like the wall street journal or Barron's( either in print or online), find the latest values for each of the following market averages and indexes, and how each has performed over the past 6 months: A. DJIA B. S&P; 500 C. NASDAQ Composite D. S&P; MidCap 400 E. Dow Jones Wilshire 5000 F. Russell 2000 3.using the stock quotations in exhibit 11.4, find the 52 week high and low for Nucor's common. what is the stock's latest dividend yield? what was the closing price, and at which P/E ration was the stock trading? Of the stocks listed in exhibit 11.5, which had the highest price/earnings ratio and the biggest change in price? which three stocks had the highest dividend yields, and which three had the highest closing prices?Explanation / Answer
1. Yes it will make difference with limit order as Market Orders (MKT) Market orders are orders to buy or sell a contract at the current best price, whatever that price may be. In an active market, market orders will always get filled, but not necessarily at the exact price that the trader intended. For example, a trader might place a market order when the best price is 1.2954, but other orders might get filled first, and the trader's order might get filled at 1.2956 instead. Market orders are used when you definitely want your order to be processed, and are willing to risk getting a slightly different price. Limit Orders (LMT) Limit orders are orders to buy or sell a contract at a specific or better price. Limit orders may or may not get filled depending upon how the market is moving, but if they do get filled it will always be at the chosen price, or at a better price if there is one available. For example, if a trader placed a limit order with a price of 1.2954, the order would only get filled at 1.2954 or better, if it got filled at all. Limit orders are used when you want to make sure that you get a suitable price, and are willing to risk not being filled at all.
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