P3.6 Imagine that you have placed a limit order to buy 100 shares of Sallisaw Tool at

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P3.6 Imagine that you have placed a limit order to buy 100 shares of Sallisaw Tool at a price of $38, although the stock is currently selling for $41. Discuss the consequences, if any, of each of the following.

a. The stock price drops to $39 per share two months before cancellation of the limit order.

b. The stock price drops to $38 per share.

c. The minimum stock price achieved before cancellation of the limit order was $38.50. When the limit order was canceled, the stock was selling for $47.50 per share.

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Fundamentals Of Investing

ISBN: 9780136117049

11th Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott B. Smart, Scott J. Smart

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