The current Bid for a stock is $55.25 and the Asked price is $55.50. Suppose you

ID: 2633413 • Letter: T

Question

The current Bid for a stock is $55.25 and the Asked price is $55.50.

Suppose you have submitted an order to buy at market. What will happen? At what price will your trade be executed?

Suppose you have submitted an order to sell at market. What will happen? At what price will your trade be executed?

Suppose you have submitted a limit order to sell at $55.62. what will happen?

Suppose you have submitted a limit buy order at $55.37. What will happen?

Suppose you have submitted a stop loss order at $51.28. What will happen? What is your maximum

Suppose you have submitted a stop buy order at 57.35. What will happen?

Please show me how you got your answers.

The bid on Fincorp is $55.25 and the ask is $55.50.

Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed?

$55.50 (the best ask)

Suppose you have submitted an order to your broker to sell at market. At what price will your trade be executed?

$55.25 (the best bid)

Suppose you have submitted a limit order to sell at $55.62. What will happen?

Your order will not be executed immediately. It will be placed in the limit order book behind the best ask of $55.50.

Suppose you have submitted a limit order to buy at $55.37. What will happen?

Your order will not be executed immediately. It will be placed in the limit order book ahead of the $55.25 and become the best bid.

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