In the context of buying and selling securities, placing a sell limit order: a instructs your...
In the context of buying and selling securities, placing a sell limit order:
a instructs your broker to sell your stock just before it becomes undervalued in the market.
b prevents your broker from buying low and selling high over a relatively short time horizon.
c prevents your broker from selling your stock at a price you believe is too low.
d instructs your broker to sell your stock at the current market price.
Homework Answers
c. prevents your broker from selling your stock at a price you believe is too low.
In this case the stick would be sold at a specific price or better, hence it is the lower limit price set by the principal and below this, the product or service will not be sold in the market.
Add Answer to:
In the context of buying and selling securities, placing a sell
limit order:
a instructs your...
1. What is a stock? A. An IOU of a corporation. B. A piece of ownership...
1. What is a stock? A. An IOU of a corporation. B. A piece of ownership in a corporation. C. Total ownership of a corporation. D. A retirement investment. E. None of the above. 2. When you purchase a stock for $10.00 and then sell it one month later at $20.00 you are · A. Buying low and selling high · · B. Buying high and selling low · · C. Short selling low and short covering high · ·...
Even though a company sets a limit on the number of shares it will sell, before...
Even though a company sets a limit on the number of shares it will sell, before selling any of them, the company must receive authorization to market the shares from the Securities and Exchange Commission (SEC). True or False There are two major markets for the sale of stock: the primary market and the secondary market. True or False Informational efficiency has to do with the speed and accuracy of processing a buy or sell order at the best available...
. On January 1, you tell your broker to sell short 500 shares of Apple Inc....
. On January 1, you tell your broker to sell short 500 shares of Apple Inc. stock at a price of $100 per share. You use $30,000 cash to serve as a margin. (a) (5 points) How high can the stock price go before you get a margin call if the maintenance margin is 50%? (b) Assume that on April 1, a dividend of $4 per share was paid. On May 1, you covered the short sale by buying the...
Consider the follow order be are limit orders away from the market. How order book exists...
Consider the follow order be are limit orders away from the market. How order book exists for a particular stock." per share. particular stock. That is, these the market". The stock last traded at $56.64 Buy Orders Sell Orders Shares 250 600 900 1200 Price $55.50 $55.40 $55.30 $55.20 Shares Price 100 $65.60 500 $55.70 750 $55.80 800 $55.90 15. If you put in a market order to buy 400 shares of stock, what wit be the total cost of...
Hello, I just need help on part b. However, you need part a in order to...
Hello, I just need help on part b. However, you need part a in order to answer part b, I believe. If you could please explain how we deal with interest as it relates to short selling so I can solve similar problems myself in the future, that would be much appreciated. Thank you in advance! Q2. (a) You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to...
You sell short 200 shares of Doggie Treats Inc. which are currently selling at $52 per...
You sell short 200 shares of Doggie Treats Inc. which are currently selling at $52 per share. You post the 50% margin required on the short sale. If your broker requires a 28% maintenance margin, at what stock price will you get a margin call? (You earn no interest on the funds in your margin account and the firm does not pay any dividends) You short-sell 217 shares of Alibaba, at $108 per share. If you wish to limit your...
ASsignment 20O-Hybria Fnancing-Preierred Stock, Wartants, and convertibies Just like any financing security, convertibles have certain advantages and disadvantages Based on your understanding of...
ASsignment 20O-Hybria Fnancing-Preierred Stock, Wartants, and convertibies Just like any financing security, convertibles have certain advantages and disadvantages Based on your understanding of using convertibles for financing, identify whether each of the features listed in the following table is an advantage or a disadvantage from an issuer's standpoint: Advantage Disadvantage Feature Convertibles allow investors to buy the company's shares at a certain strike price. Conversion usually takes place when the company's share price increases beyond the strike price. Convertible securities...
exercise 2you decide to sell short 100 shares of Charlotte Horse Farms when it is selling at its yearly high of $56
exercise 2you decide to sell short 100 shares of Charlotte Horse Farms when it is selling at its yearly high of $56 . Your broker tells you that your margin requirement is 45 percent and the commission on the purchase is $155 . While you are short the stock , Charlotte pays a $2.50 per share dividend. At the end of the one year, you buy 100 shares of Charlotte at $45 to close out your position and are charged...
Suppose that you sell short 400 shares of Xtel, currently selling for $50 per share, and...
Suppose that you sell short 400 shares of Xtel, currently selling for $50 per share, and give your broker $8,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $54; (ii) $50; (iii) $44? Assume that Xtel pays no dividends. (Leave no cells blank - be certain to enter "O" wherever required. Negative values...
You are bearish on Telecom and decide to sell short 100 shares at the current market...
You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? Enter your answer without a dollar sign Your Answer: Answer Question 5 (1 point) continued from the previous question) How high can the price of the stock go before you get...
Consider the follow order be are limit orders away from the market. How order book exists for a particular stock." per share. particular stock. That is, these the market". The stock last traded at $56.64 Buy Orders Sell Orders Shares 250 600 900 1200 Price $55.50 $55.40 $55.30 $55.20 Shares Price 100 $65.60 500 $55.70 750 $55.80 800 $55.90 15. If you put in a market order to buy 400 shares of stock, what wit be the total cost of...
ASsignment 20O-Hybria Fnancing-Preierred Stock, Wartants, and convertibies Just like any financing security, convertibles have certain advantages and disadvantages Based on your understanding of using convertibles for financing, identify whether each of the features listed in the following table is an advantage or a disadvantage from an issuer's standpoint: Advantage Disadvantage Feature Convertibles allow investors to buy the company's shares at a certain strike price. Conversion usually takes place when the company's share price increases beyond the strike price. Convertible securities...
Suppose that you sell short 400 shares of Xtel, currently selling for $50 per share, and give your broker $8,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $54; (ii) $50; (iii) $44? Assume that Xtel pays no dividends. (Leave no cells blank - be certain to enter "O" wherever required. Negative values...
You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? Enter your answer without a dollar sign Your Answer: Answer Question 5 (1 point) continued from the previous question) How high can the price of the stock go before you get...
Most questions answered within 3 hours.
-
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 6 minutes ago -
a) Write a verilog module for 1:4 Demultiplexer using verilog
primitives.
b) Design 1-to-4 DEMUX using...
asked 48 seconds ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 13 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 22 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 21 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 23 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 24 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 28 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 44 minutes ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 45 minutes ago -
Implement C++ program for each of the following.
Let D = [-48, -14, -8, 0, 1,...
asked 1 hour ago -
Consider a labor market in which LD = 400 – 4W and LS = 250 +...
asked 1 hour ago