Assume that you use a TD Ameritrade brokerage account and place your stock trades through the Interactive Voice Response (IVR) Phone System, which charges a $34.99 commission per stock trade. You would like to sell $1,500 shares of Microsoft Corporation, which is listed on the Nasdaq stock exchange, so you check the real-time quotes through TD Ameritrade and see bid price of $57.31 and an ask price $57.33.

QUESTIONS:

c. What are your total transaction cost if the Nasdaq dealer who receives your order decides to act as a broker and allows a public order to buy 1,500 shares of Microsoft to satisfy your order

d. Regardless of how your trade is executed, based on the bid/ask spread what is the market value of your trade?