Ask Question
BusinessBusiness
6 December, 09:18

Suppose you will buy 1000 shares of IBM, you give your broker a limit buy order with 50$/share and a stop to buy order 60$/share.

(1) If now the share price of IBM is 55$/share, if the broker can buy the shares? Why?

(2) If now the share price of IBM is 62$/share, if the broker can buy the shares? Why?

+2
Answers (1)
  1. 6 December, 12:31
    0
    IBM Shares

    Limit Buy Orders:

    1. If now the share price of IBM is 55$/share, the broker can buy. The order states clearly that the range of prices when he could buy IBM shares are between $50 and $60. Since the range has not exceeded $60 dollars, he can continue buying until he had bought the 1000 shares you ordered.

    2. If now the share price of IBM is $62 per share, he is not duly authorized to buy. The highest price at which he could buy had been exceeded. Therefore, is not duly authorized to buy.

    Explanation:

    1. In brokerage relationships, which is an agency, the broker is expected to act according to the principal's instructions and in the best interest of his client.

    2. As the client had clearly stated a price range within which the agent could buy a specified number of shares of IBM, it is expected that he obeys the stated instructions.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose you will buy 1000 shares of IBM, you give your broker a limit buy order with 50$/share and a stop to buy order 60$/share. (1) If ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Marketing efforts to produce, promote, and reclaim environmentally sensitive products are referred to as
Answers (1)
The time to research a potential employer is
Answers (1)
RKO Company sold bonds with a face value of $890,000 for $955,501. The bonds have a coupon rate of 7 percent, mature in 10 years, and pay interest annually every December 31. All of the bonds were sold on January 1 of this year.
Answers (1)
Georgina is the owner of a company called piquant (which means having a pleasantly sharp taste or appetizing flavor).
Answers (1)
Suppose that papers for a newspaper stand cost $0.40 and sell for $0.80. They currently have no salvage value. If the stand owner is able to find an outlet that would provide a salvage value of $0.10, what would be the increase in service level? a.
Answers (1)
New Questions in Business
In table 1.1, the highest opportunity cost of missiles in terms of houses is:
Answers (1)
Cheryl is a senior legal secretary of a large software company. Her job duties include handling legal secretarial duties, managing the legal support team, and advising managers on the legal aspects of their teams.
Answers (2)
According to the federal Administrative Procedure Act, an agency is any governmental authority besides Congress and the courts. Which function does not fall under the category of what an agency does?
Answers (1)
Companies that use a process-cost accounting system would: establish a separate Finished-Goods Inventory account for each manufacturing department. charge goods produced with actual overhead amounts rather than applied overhead amounts.
Answers (1)
Williams Inc. is expected to pay a $5 dividend next year and that dividend is expected to grow at 2.5% every year thereafter. If the discount rate is 11.
Answers (1)
Home » Business » Suppose you will buy 1000 shares of IBM, you give your broker a limit buy order with 50$/share and a stop to buy order 60$/share.
Sign Up Forgot Password?