1. Describe the differences between price-weighted index and value-weighted index.
2. In IPO market, a phenomenon called, leaving money on the table, is common. Describe the phenomenon by googling. Is it good for the IPO issuing company? Why or why not?
3. You are about to buy shares of WMT. The daily range of WMT for last several days is between $50 and $54. A second ago, WMT was sold for $52. Since youre a long-term investor, a fast execution is not your first priority. You want to buy shares at a good price (i.e., low price). Would you put a market order, limit order, or stop order in this situation? Justify you decision.
4. You are about to buy shares of WMT. The daily range of WMT for last several days is between $50 and $5 A second ago, WMT was sold for $52. Since youre a long-term investor, a fast execution is not your first priority. You want to buy shares at a good price (i.e., low price). However, you also want not to miss a buying opportunity. Would you put a market order, limit order, or stop order in this situation? Justify you decision.