Question
The current inside (best) quote for ABC stock is given as follows: Bid: $220 Ask $220.5 Which one of the following statement is NOT correct?
The current inside (best) quote for ABC stock is given as follows:
Bid: $220 Ask $220.5
Which one of the following statement is NOT correct?
A. If you place a stop order of $ 220.2 to sell, it will be executed immediately since the bid price of $220 is lower than $220.2.
B. If you place a limit order of $220.4 to buy, it will not be executed unless the ask price drops to $220.4 or lower.
C. If you place a limit order of $220.5 to sell, it will be executed immediately.
D. If you place a market order to sell, it will be executed immediately at $220.
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
6th Edition
150639681X, 978-1506396811
