Portfolio Management

For each of the following, discuss which of the two orders in shares of Sunny Corporation

will have a greater market impact. Assume that all other factors are the same.

A. i. An order to buy 5,000 shares placed by a trader on the NYSE.

ii. An order to buy 50,000 shares placed by the same trader on the NYSE.

B. i. An order to buy 25,000 shares placed by a trader on the NYSE.

ii. An order to buy 25,000 shares placed on the NYSE by another trader who is

believed to represent informed investors in the stock.

C. i. An order to sell 20,000 shares placed by a trader on the NYSE.

ii. An order to sell 20,000 shares placed by the same trader on POSIT, an electronic

crossing network.