Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone explain this step by step please? Thank you! t trade in the stock occurred at a price of $ 5 0 . a

can someone explain this step by step please? Thank you! t trade in the stock occurred at a price of $50.
a. If a market sell order for 150 shares comes in, will it be filled immediately? At what price will it be filled? If not, please describe the situation and explain why. (Round your answer to 2 decimal places.)
b. If a limit sell order for 150 shares at the price of 49.78 comes in, will it be filled immediately? At what price will it be filled? If not, please describe the situation and explain why. (Round your answer to 2 decimal places.)
c. Based on the current order book structure, Bill expects the stock price will go down. Is it a reasonable expectation? Explain why.
d. Suppose a moderate volume of market buy order or a market sell order having the same size comes in, which one do you think will cause a larger stock price change? Explain why.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Gapenskis Understanding Healthcare Financial Management

Authors: George H. Pink, Paula H. Song

8th Edition

1640551093, 978-1640551091

More Books

Students also viewed these Finance questions

Question

What impediments deal with regulators?

Answered: 1 week ago

Question

What are their performance levels?

Answered: 1 week ago