Ask Question
4 May, 09:48

You would like to buy shares of International Business Machines (IBM). The current bid and ask quotes are $103.25 and $103.30, respectively. You place a market buy-order for 200 shares that executes at these quoted prices. How much money did it cost to buy these shares? a. $10,330.00 b. $20,650.00 c. $20,660.00 d. None of the options

+3
Answers (1)
  1. 4 May, 13:12
    0
    c. $20,660.00

    Explanation:

    The current bid and ask quotes are quotes on a single share of stock. The bid price is the price at which buyers are willing to buy a stock while the ask price is the price sellers are willing to sell a stock.

    If you would like to buy shares of International Business Machines (IBM), you will do so at the ask price;

    Hence cost of shares

    = 200 * $103.30

    = $20,660
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You would like to buy shares of International Business Machines (IBM). The current bid and ask quotes are $103.25 and $103.30, ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers