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Scenario: Suppose you buy stock in Penny's Pickles for $25 a share on TUESDAY and on FRIDAY, the shares are each worth $27.50 . 2pts

Scenario:

Suppose you buy stock in Penny's Pickles for $25 a share on TUESDAY and on FRIDAY, the shares are each worth $27.50.

2pts each = 10pts total

What would be the benefit of selling on Friday? (Will you earn anything?)

Why might someone decide NOT to sell on Friday? (Think about how you would benefit from NOT selling)

If you hang onto Penny's Pickle's stock that have increased in value, you will have what's known as:

If you sell all of your shares on FRIDAY, will you still qualify for dividends at the end of the quarter? Why or why not?

If you DO get dividends from Penny's Pickle's stock, what are 2 investment choices you can make with the money you receive?

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