The following quotes were observed for Buffin Corp. (ticker: BUFN) on the two dates indicated.

a. Suppose you decide to use a market order to buy 500 shares of BUFN on September 14 and then sell the 500 shares using a market order on September 15. Assuming no brokerage commissions, how much of a gain or loss did you make?

b. Suppose you decide to use limit orders instead of market orders. On September 14 you put in a limit order to buy 500 shares of BUFN at $14.58 per share. On September 15 you put in a limit order to sell 500 shares of BUFN at $15.08 per share. Both orders were executed on their respective days. Assuming no brokerage commissions, how much of a gain or loss did you make?

c. What are the trade-offs between using market orders and limit orders?

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Buffin Corp. Bid Ask BUFN September 14 $14.56 $14.60 Buffin Corp. Bid Ask BUFN September 15 $15.04 $15.10