Description
Questions
- The divisor used in a price-weighted index will increase whenever a stock within the index undergoes a reverse stock
| Number of shares | Closing Prices | ||
| Company | outstanding | Year T | Year T + 1 |
| W | 1,500 | $22.00 | $18.00 |
| X | 2,500 | 35.00 | 25.00 |
| Y | 2,000 | 10.00 | 15.00 |
| Z | 3,000 | 50.00 | 48.00 |
Find the percentage change of a value-weighted index consisting of these four stocks from years T to T+1. Round your final answer to four decimals and enter your answer in decimal format (EX:.XXXX)
- The following table shows the price movements of three stocks that comprise a price-weighted Use this table to answer the next two questions.
| Stock Price | |||
| Date | X | Y | Z |
| Jan. 2, 2012 | 40 | 100 | 150 |
| Jan. 3, 2012 | 12 | 95* | 170 |
| Jan. 4, 2012 | 14 | 22 | 165** |
| Jan. 5, 2012 | 12*** | 24 | 85 |
*4:1 split on stock Y after close on 1/3/2012
**2:1 split on stock Z after close on 1/4/2012
***3:4 reverse split on stock X after close on 1/5/2012
The base date for the index is Jan. 2, 2012
Calculate the divisor used for the opening of Jan. 6, 2012. Round intermediate steps and your final answer to four decimals.
- Find the percentage change in the index from 1/4-1/5. Round intermediate steps and your final answer to four
- Assume the following information concerning two stocks that make up an What is the value-weighted return for the index? Assume the following information concerning two stocks that make up an index. What is the value-weighted return for the index?
- Shares of stock owned by an individual but held in a brokerage firm’s name for ease of trading are said to be held in street
- Which of the following is a flaw of price-weighted indices?
- You just placed a stop limit order to sell 100 shares at $21 stop, $18 Which one of the following statements is correct concerning this order if the current market price is $16?
- You want to sell 600 shares of DEF stock at the going market price after the stock reaches $42 a Which type of order should you place?
- The commission structure on a stock purchase is $35 plus $0.02 per share. If you purchase seven round lots of a stock selling for $98, what is the total amount in commissions that you’ll pay?
- Use the following information to answer the next three
| Price | ||||
| Shares (millions) | 1/1/13 | 1/1/14 | 1/1/15 | |
| Douglas McDonnell | 200 | $ 70 | $ 73 | $ 87 |
| Dynamics General | 300 | 51 | 46 | 60 |
Find the rate of return for an unweighted index from 2013-2014. Round intermediate steps and your final answer to four decimals. Enter your final answer in decimal format (EX: .XXXX)
- Find the rate of return for an equally weighted index from 2014-2015.
- Find the rate of return for an equally weighted index from 2013-2014.
- Use the following information to answer the next two
| Buy Orders | Sell Orders | ||
| Shares | Price | Shares | Price |
| 1000 | 25.14 | 800 | 25.95 |
| 500 | 25.08 | 900 | 26.05 |
| 750 | 24.95 | 650 | 26.15 |
| 600 | 24.80 | 1200 | 26.30 |
Suppose you placed a market buy order for 1200 shares. How much would you pay for the stock?
- Suppose you place a market order to sell 2000 How much would you receive for your stock?
- Which of the following order types could be used to mitigate potential losses from a short sale?
- Which one of the following best describes a broker?
- Over-the-counter market activity is reflected in the Nasdaq
- Marcus just placed a stop limit order to buy 100 shares at $20 stop, $25 Which one of the following statements is correct concerning this order if the current market price is $19?
- D, E, and F are the only three stocks in an index. The stocks sell for $89, $400, and $96, If D undergoes a 2-for-3 reverse stock split, what is the new divisor? Round intermediate steps to four decimals.
