When the limit order was cancelled, Cost Accounting

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When the limit order was cancelled

Response to the following problem:

Imagine that you have placed a limit order to buy 1000 shares of Sallisaw Tool at a price of $3.80, though the shares are currently selling for $4.10. Discuss the consequences, if any, of each of the following.

a. The share price drops to $3.90 per share two months before cancellation of the limit order

b. The share price drops to $3.80 per share.

c. The minimum share price achieved before cancellation of the limit order was $3.85. When the limit order was cancelled, the share was selling for $4.75.

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Cost Accounting: When the limit order was cancelled

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