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dedylja [7]
3 years ago
5

A stock market is a public market for trading a company's stocks and derivatives. The bid-ask spread in a dealer market represen

ts the profit that a dealer would make on a transaction involving a security. Which of the following statements best describes the bid-ask spread? The difference between the closing price of the security and the opening price of the security on the day of the transaction. The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it. The sum of the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it. Erik, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Alison, is willing to sell 1,500 shares of the same stock. Unfortunately, Erik and Alison don't know one another and must complete their transactions using the stock exchange's market-making dealer. XYZ's market maker is willing to sell her shares for $30.65 per share and purchase additional shares for $30.25 per share. Select the most appropriate values in the following table: Term Bid price Ask price Bid-ask spread Value $30.25 $30.65 $0.40 If the market maker is willing to purchase the entire block of 1,500 shares from Alison and, from that block, resell 1,000 shares to Erik, then the market maker's net profit from Erik's transaction-excluding any inventory effects-will be_______.
Business
1 answer:
Elena L [17]3 years ago
3 0

Answer: The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it.

Net profit = $400

Explanation:

The bid ask spread is the difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it.

From the question, we have been given the following information:

Bid price = $30.25

Ask price = $30.65

Bisk ask spread = Ask price - Bud price

= $30.65 - $30.25

= $0.40

Net profit = $0.40 × 1000

= $400

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Fantom [35]

Answer:

Produce throughout the shorter term but depart the industries run if the circumstances don't start changing because the losses are incurred.

Explanation:

The given values are:

Gold sells,

Q = 50

Price,

= $5000

Total cost,

= $300,000

Fixed cost,

= $100,000

So,

⇒ TR=5000\times 50

⇒       =250000 ($)

Now,

⇒ TVC=300000-100000

⇒          =2000 00

So that,

⇒ AVC=\frac{VC}{Q}

On substituting the values, we get

⇒          =\frac{200000}{50}

⇒          =4000

So the above is the correct answer.

5 0
2 years ago
Prepare an answer sheet with the column headings that follow. For each of the following transactions or adjustments, indicate th
hichkok12 [17]

Answer:

             Accounts                Assets                           Liabilities     Net income

a. Depreciation Expense    -$200                                                  -$200

b. Land    / Cash                -$9,000 + $12,000                              + $3,000

c.   Equipment/Lease Liability +$11,000                 +$11,000

d.  Cash /Lease Liability         -$2,500                   -$2,500

e. Cash /Trademark             -$6,600 + $6,600

  Amortization Expense                                                                   -$165

f. & g. Cash /Equipment +$16,000 -$19,300                                -$3,300

                         

Explanation:

b. The land was sold with a gain of $3,000 ($12,000 - 9,000)

e. The trademark's amortization expense = $6,600/40 = $165 per year.

f and g. The Accounts involved are:

1. Cash +$16,000 for the sale.

2. Equipment has a debit balance of $44,000 and a credit balance of $23,400 plus Depreciation expense of $1,300.  These give a net balance of $19,300.  The equipment was sold for $16,000, recording a loss of $3,300.

3. Loss from sale of equipment = $3,300 as determined above.

7 0
3 years ago
Which of the following is the amount a 65-year-old couple retiring this year will need to pay for medical care and
Tju [1.3M]

Answer:

A healthy 65-year-old couple retiring in this year will need close to $300,000 to cover health-care expenses, including Medicare Parts B and D, according to HealthView Services.

3 0
3 years ago
What factors would increase demand for my business?<br><br> The business is an ice cream shop
Daniel [21]
It would be a good or reasonable Price
5 0
3 years ago
Blue Wave Co. predicts the following unit sales for the coming four months: September, 3, 600 units; October, 4, 900 units; Nove
Anna35 [415]

Answer:

See explanation section

Explanation:

                                 Blue Wave Corporation

                                     Production Budget

         For the months of September, October, and November

                               September          October              November

Budgeted sales        3,600                  4,900                   6,000

Add: Ending finished

goods Inventory       2,940                  3,600                   5,040

Inventory available

for sale                     6,540                  8,500                  11,040

Less: Beginning finished

goods Inventory     (2,700)                 (2,940)                 (3,600)

Budgeted finished

goods production   3,840                  5,560                   7,440

Total production = 16,840 units

Note: Current months ending finished goods is the next months beginning finished goods.

Ending Inventory for September = 4,900 × 60% = 2,940

October = 6,000 × 60% = 3,600

November = 8,400 × 60% = 5,040

5 0
3 years ago
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