Instructions

You, a RR $($registered representative$)$ of Brokerage SAM, received a call from a client who recently opened a stock trading account at your firm. Your client would like to hear your advice on several trading related questions. Use what you have learned to answer each of the following question in necessary details:

$(1)$ Stock XYZ$\text{'}$s current trading price is $$120$ per share. Your client wants to buy $100$ shares, but feels the stock price is a little too high. He wants to wait a few days to get a better price, however, he worries that the stock price will never drop to his desirable level and he might miss out the buying opportunity. The company is likely to have a big government contract upon the Congress approval. Using the combination of different trading orders you learned, you are asked to create best trading strategies for the client. Describe the trading strategies and explain to your client why they are effective and fit the client's need and concern. $($Note that this question might not have standard answer, there might be more than one good solutions. Try to use your creativity in ansiver this question$)$

$(2)$ The client is a top manager of company UWV. The company gave him $10,000$ shares of the company's own stock years ago. After that, the company went to public $($i$.$e$.$ sold their shares of stock to the public stock market for the first time$).$ Now his company's stock is traded at $$200$ per share in stock market and your client wants to sell all the shares he has. The total number of shares outstanding in his company is $300,000.$ He was told by someone that the shares he has are subject to special trading rules. He is afraid that he can't sell them. Reflect on what you have learned in Chapter $11,$ explain to this client what type$($s$)$ of possible trading restriction$($s$)$ he is facing, and what actions he has to do in order to sell all of the shares.