7. Pigeon Falls Fertilizer Company is listed on the NYSE. Gabby Hartnett, the specialist handling Pigeon Falls

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7. Pigeon Falls Fertilizer Company is listed on the NYSE. Gabby Hartnett, the specialist handling Pigeon Falls stock, is currently bidding 35~ and asking 35~. What would be the likely outcomes of the following trading orders?

a. Through a broker, Eppa Rixey places a market order to buy 100 shares of Pigeon Falls stock. No other broker from the crowd takes the order.

b. Through a broker, Eppa places a limit order to sell 100 shares of Pigeon Falls stock at 36.

c. Through a broker, Eppa places a limit order to buy 100 shares of Pigeon Falls stock at 35~ . Another broker offers to sell 100 shares at 35~.

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Investments

ISBN: 9788120321014

6th Edition

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

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