In: Finance
Are the following statements true or false? If false, correct them.
1.An investor who wishes to sell shares immediately should ask his or her broker to enter a limit order.
2.Then ask price is less than bid price.
3.An issue of additional shares of stock to the public by Microsoft would be called IPO.
4. An ECN (Electronic Communication Network) is a computer link used by security dealers primarily to advertise prices at which they are willing to buy or sell shares.
Solution:
1.
This statement is false- An investor who wishes to sell shares immediately should ask his or her broker to enter a Market Order
2.
This statement is false- Ask price is higher than the bid price as ask price is the price asked by the seller and seller wants to sell at higher price
3.
The statement is False - An issue of additional shares of stock to the public by Microsoft would be called FPO (Follow up public offer). IPO is the first time issue of shares
4.
The statement is True- An ECN (Electronic Communication Network) is a computer link used by security dealers primarily to advertise prices at which they are willing to buy or sell shares.