The “circuit breaker rule” governs that “a stock will be allowed to trade ±15% from the close price at the opening of the market”. Explain the circuit breaker rule as utilized by the Jamaica Stock Exchange (JSE).
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The “circuit breaker rule” governs that “a stock will be allowed to trade ±15% from the close price at the opening of the market”. Explain the circuit breaker rule as utilized by the Jamaica Stock Exchange (JSE).
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- What is arbitrage? Explain the arbitrage opportunity when the price of a dually listedmining company stock is $50 (USD) on the New York Stock Exchange and $60 (CAD) on the Toronto Stock Exchange. Assume that the exchange rate is such that 1 USD equals 1.21 CAD. Explain what is likely to happen to prices as traders take advantage of this opportunity.Here is some price information on Fincorp stock. Suppose that Fincorp trades in a dealer market. Bid Ask 46.54 46.89 a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? (Round your answer to 2 decimal places.) b. Suppose you have submitted an order to sell at market. At what price will your trade be executed? (Round your answer to 2 decimal places.) c. Suppose you have submitted a limit order to sell at $47.15. What will happen? The trade will not be executed The trade will be executed d. Suppose you have submitted a limit order to buy at $46.76. What will happen? The trade will not be executed The trade will be executedLike a share of stock, EFTs trade _____ A) on an exchange B) once per day C) at an average price and depending upon the broker used may be subject to a _____ A) front end load fee B) back end loan fee C) brokerage commission
- A stock trades for shs. 120. A put on this stock has an exercise price of shs. 140 and is about to expire. The put trades for shs. 22. How would you respond to this set of prices? ExplainIn the Indian equity markets, if a stock is bought in the secondary market on Tuesday, the delivery of the stock will be recieved on O a. Tuesday O b. Wednesday OC Thursday Od. FridayHere is some price information on FinCorp stock. Suppose that FinCorp trades in a dealer market.Bid =55.25 Ask= 55.50a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed?b. Suppose you have submitted an order to sell at market. At what price will your trade be executed?c. Suppose you have submitted a limit order to sell at $55.62. What will happen?d. Suppose you have submitted a limit order to buy at $55.37. What will happen?
- c) Let us say, the stock exchange listing requirements stipulate that once the share of your company trades at a price of $20 or less, the share will be delisted from the exchange and no further trades will be allowed. You observe that currently the share of your company is trading at around $25 per share on the stock exchange. What do you recommend in such a situation: A stock split or a reverse stock-split? Why?If you transmit a market buy order to the stock exchange, will you buy at the bid or the ask? a. Ask b. Bid21. If Fincorp stock trades in a dealer market with bid price of 55.25 and asked price of 55.50, a) Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? b) Suppose you have submitted an order to sell at market. At what price will your trade be executed? c) Suppose you have submitted a limit order to sell at $55.62. What will happen? d) Suppose you have submitted a limit order to buy at $55.37. What will happen?
- Describe the following in placing purchase or sale orders in the stock market: Market Limit Stop Stop Limit Give an example of each.Find the cost, at the day's closing price, for the stock purchase below. Include typical discount broker commissions as described in the table, using Broker B. Stock Symbol: GFB Number of Shares: 355 Transaction Type: Automated (Phone)1) The capital market consist of : A. Treasury bill B. Certificate of deposit C. Purchases agreement D. Common stock 2) The money market consist of: A. Certificate of deposit B. Common stock C. Ordinary share D. Preference stock 3) Which of the following is a characteristic of the money market? A. Long term B. High Risk C. High liquidity D. Poor liquidity 4) Which of the following is a characteristic of the capital market? A. Poor liquidity B. Low Risk C. Short Term D. Convertibility 5) The financial markets are classified as all following except: A. Debt market vs stock market B. Money market vs capital market C. Primary markets vs secondary market D. Future markets vs spot markets 6) An order to be executed at the best price available in the market: A. Limited order В. Market order C. Opening order D. Closing order