's Week 4-#4-Leanne-3 - Stock Market Transactions Bull...

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Stock Market Transactions ‘Bull’ market prices are rising ‘Long’, buy calls ‘Bear’ market prices are falling ‘Short’, buy puts Market Indexes i.e. http://ca.finance.yahoo.com/q/bc?s=^GSPTSE&t=2y&l=on&z=m&q=l&c=
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Market Orders execute immediately at the best available price in the market ‘unrestricted’ order bid price = the most a buyer is willing to pay ask price = the least a seller is willing to sell for Example: ABC stock - Bid $9 1/2, Ask $10 place MO to buy (MOB)100 shares ABC pay ASK price of $10 $10 x 100 shares = $1,000 + 2% purch.comm’n 20 pay $1,020
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Example: Market Order to Sell DEF stock - Bid $7 1/2, Ask $8 place MO to sell (MOS) 100 shares DEF receive BID price of $7 1/2 $7.50 x 100 shares = $750 - 2% sale comm’n 15 receive $735
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Other Types of Orders Limit Order Stop Loss Order Day Order Open / Good Till Cancelled (GTC) Good Through Date Any Part All or None Fill or Kill
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Order Question #1 You place a limit day order to buy 300 LMN Co.
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This note was uploaded on 11/25/2010 for the course BUSINESS BU111 taught by Professor Yost during the Fall '10 term at Wilfred Laurier University .

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's Week 4-#4-Leanne-3 - Stock Market Transactions Bull...

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