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2 years ago

Sam placed a limit order to sell 500 shares of stock at $14 a share. Which of the following does Sam know for sure?

Business

1 answer:

Arte-miy333 [17]2 years ago

4 0

Answer:

His order may never execute and,

He could receive more , but not less, than $14 a share

Explanation:

A limit order places a pre specified price for buying or selling a security. Such a mechanism is used to limit or restrict the extent of losses the investor may suffer.

For example, an investor is desirous of purchasing the stock of XYZ Co whose current market price is $100. The investor places a limit that his buy order shall only be executed once the stock price touches $90 or lower than that.

In this case, the moment market price touches $90, the order shall be executed and the purchase shall be complete. The flip side being, the order may never be executed if the price never reaches the limit prescribed.

In the given case, Sam placed a sell limit order wherein 500 shares of stock would be sold once the price reaches $14 or higher. So in this case, if the price does reach $14, he would at least receive $14 or higher, but not lower than $14 since below this price, the order will not be executed.

Also, there is no guarantee that the order will be executed since it depends upon the share price reaching $14, which may or may not happen.

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2 years ago

Graham Corp. has 1,000 cartons of oranges that were harvested at a cost of $30,400. The oranges can be sold as is for $36,400. T

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Answer:

c. $3,600

Explanation:

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2 years ago

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Answer:

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2 years ago

If a firm decide to eliminate a product line that produce a yearly net lo of $21000 it yearly net income

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Option A is the proper response. It will only increase by $21,000 if it can completely eliminate all of the fixed expenses related to that product line.

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All fixed expenses related to a discontinued product line should also be discontinued. then the corporation can add $21,000 to its overall net profits. When a product line is discontinued, variable expenses are automatically eliminated.

The correct response is A. only if it can eliminate all of the fixed costs related to that product line will it increase by $21,000.

To learn more about Net Income, refer to this link:

brainly.com/question/1347024

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<u>COMPLETE QUESTION:</u>

If a firm decides to eliminate a product line that produces a yearly net loss of $21,000, its yearly net income

A. will increase by $21,000 only if it can eliminate all of the fixed costs associated with that product line.

B. will increase by $21,000 only if it can eliminate all of the variable costs associated with that product line.

C. will automatically increase by $21,000.

D. will decrease unless the firm can eliminate all of the fixed costs associated with that product line.

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Answer:

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