Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Consider the following limit order book for FinTrade stock. The last trade in the stock occurred at a price of $50.

 

Limit Buy Orders Limit Sell Orders
Price Shares Price Shares
$ 49.75 500 $ 49.80 100
49.70 900 49.85 100
49.65 700 49.90 300
49.60 400 49.95 100
48.65 600    

 

Required:
a. If a market buy order for 100 shares comes in, at what price will it be filled? (Round your answer to 2 decimal places.)

 


b. At what price would the following market buy order be filled? (Round your answer to 2 decimal places.)

 


c. If you were a security dealer, would you want to increase or decrease your inventory of this stock?

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