Question

IBS Investments on-line midterm prep with calculations - Protected View - Saved to this PC Doğukan Kara DK Share Slide Show Review View Help Search ses. Unless you need to edit its safer to stay in Protected View. Example - Market orders AIBS Ask Quantity ask Quantity Bid bid 200 120 150 118 400 115 121 122 123 300 400 250 • Buy 200 at market • Buy 400 at market • Buy 900 at market • Sell 150 at market • Sell 300 at market • Sell 400 at market

for example if you buy 200 shares from market what is price or if you sell 150 shares at market what is price

Answer 1

A buyer of shares when places a market order, the order gets filled as per the best available ask prices

For example a buy order of 200 shares is going to be filled at a price of 121. In order to buy the shares, some one else has to be the seller and the seller over here offers to sell 300 shares @121 each, Hence 200 shares order would be filled at 121.

Similarly a seller when places a market order, the order gets filled as per the best available bid prices

A sell order for 150 shares would be filled in at a price of 120.

A buy order of 400 shares will be filled in the following manner: 300 shares @ 121 and next 100 shares @122

a buy order of 900 shares will be filled in following manner = 300 shares @ 121, next 400 shares @122 and remaining 200 shares @123

A sell order of 300 shares: 200 shares @120 and remaining 100 @ 118

A sell order of 400 shares : 200 shares @120 ,next 150 @ 118 and remaining 50 shares @115.