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Buying Stock with a Market Order You would like to buy shares of Ralph Lauren (RL)....

Buying Stock with a Market Order You would like to buy shares of Ralph Lauren (RL). The current bid and ask quotes are $85.20 and $85.34, respectively. You place a market buy-order for 300 shares that executes at these quoted prices. How much money did it cost to buy these shares?

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Answer #1

Bid Quote is the quote to buy share from the investor.

Ask quote is the quote to sell share to the investor.

Cost of shares = ask quote * Number of shares

Cost of share = $85.34 * 300

Cost of share = 25,602

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