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Questions 2 Regarding stock trading in Shanghai Stock Exchange, answer the following three questions: (1) Explain limit order and market order. (2) Explain the principles
Questions 2 Regarding stock trading in Shanghai Stock Exchange, answer the following three questions: (1) Explain limit order and market order. (2) Explain the principles of price priority and time priority in order execution. (3) Choose a company listed on SSE and select a particular trading day as an example. When the nearest transaction price of that company's stock is RMB xx.xx at a particular time you choose (e.g., 10.30am), you place a market order to buy 50 lots immediately. What would be the most likely transaction price(s) if you successfully buy them? On the other hand, you place a market order to sell 50 lots at that time, what would be the most likely transaction price(s) if you successfully sell them? Explain your answers with reasons
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