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Andre45 [30]
3 years ago
10

An institutional customer says the following to his broker: "Buy 100,000 shares of ABC stock whenever you think the time is best

. This order is good unless I call you to cancel."
Which statement is TRUE about the handling of this order?

A. An executed power of attorney must be obtained from the customer prior to accepting the order
B. The order must be executed by the close of the market on that trading day
C. The order can be accepted as given, and can be executed at the discretion of the brokerage firm at any time or day
D. This order can only be accepted if the customer places it via fax or e-mail
Business
1 answer:
Furkat [3]3 years ago
7 0

" The order can be accepted as given, and can be executed at the discretion of the brokerage firm at any time or day " is TRUE about the handling of this order.

Explanation:

In this case "Discretion" applies to free trading when a broker conducts business in an user's account without any of the customer being contacted first.

It typically means that the broker will determine how many stock, commitments or other securities to purchase or sell, at what cost, without customer input.

For example, a consumer might approve only blue-chip investments. If an investor prefers socially responsible investments, the broker may not bet in stocks or under-funded businesses. The investor can advise the broker, but allow the broker to spend as the broker sees fit, to preserve a certain stock to bond ratio. A broker handling a discretionary account shall follow (if applicable) the customer's explicit orders and limitations.

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he management accountant for​ Giada's Book Store has prepared the following income statement for the most current​ year: Cookboo
dlinn [17]

Answer:

Giada's Book Store

The company would have reported a total profit of $19,000, which is $10,000 less.

Explanation:

a) Data and Calculations:

Income statement for the most current​ year:

                                               Cookbook  Travel Book    Classics   Total

Sales                                        $68,000  $126,000  $53,000  $247,000

Cost of goods sold                    40,000     66,000     21,000     127,000

Contribution margin                  28,000     60,000    32,000     120,000

Order and delivery processing 21,000     24,000      11,000       56,000

Rent​ (per sq. foot​ used)              2,000       5,000      4,000         11,000

Allocated corporate costs          8,000        8,000      8,000       24,000 Corporate profit                     ​$​ (3,000​)  $23,000    $9,000     $29,000

Corporate profit =                     $29,000

less allocated cookbook costs   10,000

Adjusted corporate profit =      $19,000

b) Discontinuing the Cookbook product line would have eliminated the contribution the product line makes to defraying Rent and Allocated Corporate costs totalling $10,000 unless the Rental space was a variable cost.

4 0
3 years ago
In a reorder point problem where both demand and lead time are variable, demand averages 200 units per day with a daily variance
Romashka [77]

Answer:

~ 1561.235

Explanation:

Given :

Z=1.645

d = 200\ \\variance =64

Standard deviation can be determined by the \sqrt{variance }

Standard deviation=SD

=\sqrt{64}\ =\ 8

LT = 6\

σ = 8

Now using the formula

R\ =\ d \ *\ LT\ +Z\ \sqrt{LT^{2}\ +SD^{2} \ +\ d\ \sigma\ ^{2}  } \\\\Putting\  the\  respective\  value\  we\  get \\R=200 * 6 + 1.645\sqrt{6 * 8^2 + 200 *1^2}

R=1561.235

~ 1561.235

6 0
3 years ago
What is variable cost per unit<br><br><br>​
SSSSS [86.1K]
Variable costs are the costs that change in total each time an additional unit is produced or sold. With a variable cost, the per unit cost stays the same, but the more units produced or sold, the higher the total cost. ... Although total fixed costs are constant, the fixed cost per unit changes with the number of units.
7 0
2 years ago
Read 2 more answers
Which of the following is likely the lowest paid job listed?
Softa [21]

I think it’s 1. retail clerk

3 0
3 years ago
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You own a portfolio that has a total value of $215,000 and it is invested in Stock D with a beta of .86 and Stock E with a beta
babunello [35]

Answer:  BP = BD(WD) + BE(WE)

                   1 = 0.86(1-WE) + 1.39WE

                   1 = 0.86-0.86WE + 1.39WE

                   1 = 0.86 + 0.53WE

                 -0.53WE = -0.14

                  0.53WE  = 0.14

                         WE   = 0.14/0.53

                         WE   = 0.2641509434

                         WD = 1 - WE

                         WD = 1 - 0.2641509434

                         WD = 0.7358490566

The dollar amount of investment in stock D = 0.7358490566 x $215,000

                                                                         = $158,207.54

Explanation: The beta of the portfolio is 1, which corresponds to the beta of the market. The beta of the portfolio equals beta of each stock multiplied by the percentage of fund invested in each stock(weight). The weight of stock D is equal to 1 - weight of stock E. Therefore, we need to make weight of stock E the subject of the formula by solving the problem mathematically and collecting the like terms. The weight of stock E is 0.2641509434. The weight of stock E will be subtracted from 1 so as to obtain the weight of stock D, which is 0.7358490566. The dollar amount of stock D equal to $215,000 multiplied by 0.7358490566, which is $158,207.54.

4 0
2 years ago
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