12. Here is some price information on Fincorp stock. Suppose first that Fincorp
ID: 2816413 • Letter: 1
Question
12. Here is some price information on Fincorp stock. Suppose first that Fincorp trades in a dealer market Bid Asked 55.25 55.50 a. Suppose you have submitted an order to your broier to buy at market. At what price will your trade be executed? (Round your answer to 2 decimal places.) Stock price b. Suppose you have submitted an order to sel at market. At what price will your trade be executed? (Round your answer to 2 decimal places.) Stock price c. What wil happen suppose you have submitted a imit order to sell at $55.62 Trade will not be executed O Trade will be executed d. What will happen suppose you have submited a limit order to buy at $55.37 O Trade will be executed O Trade will not be executed.Explanation / Answer
a. Suppose you have submitted an order to your broker to buy at market. At what price will be trade be executed?
It would be executed at $ 55.50 which is the market price for purchase
b. Suppose you have submitted an order to sell at market. At what price will your trade be executed?
It would be executed at $ 55.25 which is the market price for sell
c.What will happen Suppose you have submitted a limit order to sell at $ 55.62
In this case the trade will not be executed since the bid price is lower than $ 55.62
d What will happen Suppose you have submitted a limit order to buy at $ 55.37
In this case the trade will not be executed since the asked price is greater than $ 55.37
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