Current bid for a stock


Problem:

The current Bid for a stock is $55.25 and the Asked price is $55.50.

Required:

Question 1: Suppose you have submitted an order to buy at market. What will happen? At what price will your trade be executed?

Question 2: Suppose you have submitted an order to sell at market. What will happen? At what price will your trade be executed?

Question 3: Suppose you have submitted a limit order to sell at $55.62. What will happen?

Question 4: Suppose you have submitted a limit buy order at $55.37. What will happen?

Question 5: Suppose you have submitted a stop loss order at $51.28. What will happen? What is your maximum?

Question 6: Suppose you have submitted a stop buy order at 57.35. What will happen?

Note: Show all workings.

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Accounting Basics: Current bid for a stock
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