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What is the basic problem Greg faces in trying to dispose the block of Avantek shares? What advice would you give him if he could
What is the basic problem Greg faces in trying to dispose the block of Avantek shares? What advice would you give him if he could do it all over again given you have known what he has done in both Case A and B?
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At the T. Rowe Price Trading Desk (B) Tuesday, August 21, 1984 12:21 p.m. Greg: (in response to Michael's offer of $231/2 for Avantek and $15/4 for Tandem): "OK on Tandem, but my lowest on Avantek is $24." Michael: "OK." 285-042 At the T. Rowe Price Trading Desk (B) Exhibit 1 Avantek Trade on August 21, 1984, 12:21 p.m.-Market Close Time Price Shares (100s) 12:22 12:23 12:23 12:23 12:50 1.23 1:46 1:48 1:51 2:07 2:10 2:20 2:38 2:39 2:39 2:57 3:00 3:01 3:05 3:08 3:15 3:15 3:16 3:39 3:59 24 34 24 24 1/8 24 14 24 7/8 24 7/8 24 7/8 24 1/8 24 34 24 5/8 24 5/8 24 5/8 24 5/8 24 5/8 24 34 24 7/8 24 5/8 24 7/8 24 34 24 12 24 12 24 34 24 34 24 34 24 12 125 1,830 1,000 100 2 3 1 21 30 1 5 1 10 8 30 1 1 10 5 5 4 300 1 10 2 Exhibit 2 Tandem Trades on August 21, 1984, 12:21 p.m.Market Close Time Price Shares (100s) Time Price Shares (100s) 15 15 on on a 5 10 1 5 1 2 12:21 12:22 12:22 12:23 12:27 12:29 12:30 12:36 12:43 12:46 12:52 12:59 1:00 1:01 1:02 non on 100 1:02 1:04 1:05 1:05 1:15 1:24 1:26 1:29 1:29 1:30 1:33 1:33 1:38 1:43 1:47 1:48 1:48 1:49 1:53 1:56 2:01 2:04 2:06 2:06 2:06 2:10 2:13 2:15 2:16 2:17 2:17 15 15 15 1/4 15 1/8 15 1/2 15 15 1/8 15 1/8 15 15 1/8 15 15 1/8 15 1/8 15 1/8 15 1/8 15 1/8 15 1/8 15 1/4 15 1/8 15 1/4 15 1/4 15 1/8 15 1/8 15 1/8 15 15 15 1/8 15 1/8 15 1/8 15 1/8 15 1/8 15 15 1/8 15 15 1/8 15 15 15 1/4 15 1/8 15 1/8 15 15 1/8 15 1/8 15 15 15 2,000 1,350 3,200 7 1 2 1 10 3 10 1 5 5 10 10 20 5 5 5 2 2 5 1 25 19 15 1 2 4 13 2 51 1 60 1 2 9 30 4 4 9 50 2 1 5 5 2:17 2:17 2:21 2:24 2:26 2:27 2:32 2:33 2:33 2:35 2:40 2:43 2:44 2:44 2:44 2:45 2:45 2:53 2:57 2:57 2:58 3:02 3:05 3:06 3:09 3:10 3:11 3:11 3:11 3:11 3:13 3:13 3:14 3:17 3:21 3:22 3:28 3:33 3:38 3:41 3:47 3:50 3:54 3:56 3:56 3:58 15 15 1/8 14 7/8 15 15 15 14 7/8 14 7/8 15 15 15 15 1/8 15 1/8 15 1/8 14 7/8 14 7/8 14 7/8 15 1/8 14 5/8 15 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 15 14 7/8 15 15 15 14 7/8 14 7/8 15 15 15 14 7/8 15 14 7/8 15 15 D-60 on om GG ON ONNNNNN to --- 250 Exhibit 3 Performance of Various Stock Indexes on August 21, 1984 Dow Jones Industrials +1.87% S&P 500 +1.75% Wilshire 500 +1.56% Computer Technology Index +2.34% New Horizons Fund +1.23% At the T. Rowe Price Trading Desk (B) Tuesday, August 21, 1984 12:21 p.m. Greg: (in response to Michael's offer of $231/2 for Avantek and $15/4 for Tandem): "OK on Tandem, but my lowest on Avantek is $24." Michael: "OK." 285-042 At the T. Rowe Price Trading Desk (B) Exhibit 1 Avantek Trade on August 21, 1984, 12:21 p.m.-Market Close Time Price Shares (100s) 12:22 12:23 12:23 12:23 12:50 1.23 1:46 1:48 1:51 2:07 2:10 2:20 2:38 2:39 2:39 2:57 3:00 3:01 3:05 3:08 3:15 3:15 3:16 3:39 3:59 24 34 24 24 1/8 24 14 24 7/8 24 7/8 24 7/8 24 1/8 24 34 24 5/8 24 5/8 24 5/8 24 5/8 24 5/8 24 34 24 7/8 24 5/8 24 7/8 24 34 24 12 24 12 24 34 24 34 24 34 24 12 125 1,830 1,000 100 2 3 1 21 30 1 5 1 10 8 30 1 1 10 5 5 4 300 1 10 2 Exhibit 2 Tandem Trades on August 21, 1984, 12:21 p.m.Market Close Time Price Shares (100s) Time Price Shares (100s) 15 15 on on a 5 10 1 5 1 2 12:21 12:22 12:22 12:23 12:27 12:29 12:30 12:36 12:43 12:46 12:52 12:59 1:00 1:01 1:02 non on 100 1:02 1:04 1:05 1:05 1:15 1:24 1:26 1:29 1:29 1:30 1:33 1:33 1:38 1:43 1:47 1:48 1:48 1:49 1:53 1:56 2:01 2:04 2:06 2:06 2:06 2:10 2:13 2:15 2:16 2:17 2:17 15 15 15 1/4 15 1/8 15 1/2 15 15 1/8 15 1/8 15 15 1/8 15 15 1/8 15 1/8 15 1/8 15 1/8 15 1/8 15 1/8 15 1/4 15 1/8 15 1/4 15 1/4 15 1/8 15 1/8 15 1/8 15 15 15 1/8 15 1/8 15 1/8 15 1/8 15 1/8 15 15 1/8 15 15 1/8 15 15 15 1/4 15 1/8 15 1/8 15 15 1/8 15 1/8 15 15 15 2,000 1,350 3,200 7 1 2 1 10 3 10 1 5 5 10 10 20 5 5 5 2 2 5 1 25 19 15 1 2 4 13 2 51 1 60 1 2 9 30 4 4 9 50 2 1 5 5 2:17 2:17 2:21 2:24 2:26 2:27 2:32 2:33 2:33 2:35 2:40 2:43 2:44 2:44 2:44 2:45 2:45 2:53 2:57 2:57 2:58 3:02 3:05 3:06 3:09 3:10 3:11 3:11 3:11 3:11 3:13 3:13 3:14 3:17 3:21 3:22 3:28 3:33 3:38 3:41 3:47 3:50 3:54 3:56 3:56 3:58 15 15 1/8 14 7/8 15 15 15 14 7/8 14 7/8 15 15 15 15 1/8 15 1/8 15 1/8 14 7/8 14 7/8 14 7/8 15 1/8 14 5/8 15 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 14 7/8 15 14 7/8 15 15 15 14 7/8 14 7/8 15 15 15 14 7/8 15 14 7/8 15 15 D-60 on om GG ON ONNNNNN to --- 250 Exhibit 3 Performance of Various Stock Indexes on August 21, 1984 Dow Jones Industrials +1.87% S&P 500 +1.75% Wilshire 500 +1.56% Computer Technology Index +2.34% New Horizons Fund +1.23%Step by Step Solution
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