Question

In: Finance

GL Enterprises has 130,000 shares of stock outstanding. Janet, who is an individual investor, wants to...

GL Enterprises has 130,000 shares of stock outstanding. Janet, who is an individual investor, wants to buy 400 of these shares. The price she will have to pay is the _____ price.

Select one:

a. Bid

b. Margin

c. Broker

d. Ask

e. Spread

Solutions

Expert Solution

The correct answer is d. Ask price

Whenever an investor buys a share it has to pay the ask price. Ask price can be defined as the lowest price at which shares are being offered for purchase to investors.

Therefore Janet has to pay the ask price for 400 shares to buy the shares. It can also be said that GL Enterprise will not accept anything lower than the ask price to sell its shares.

jeff jeffy answered 1 year ago
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