You Place an Order with Your Broker to Purchase 1,000

question 243

Multiple Choice

You place an order with your broker to purchase 1,000 shares of the next two IPOs to be offered. Rumor has it that one of them will be overpriced by $3 and the other will be underpriced by $4. The offer price on both is $20. Any issue that is underpriced will only be half filled. What is your expected dollar return on these two IPOs?

• A) -$2,000
• B) -$1,000
• C) 0
• D) $1,000
• E) $2,000

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Definitions:

Indirect Approach

A communication strategy that involves presenting information in a less straightforward manner, often used to soften the delivery of sensitive or complex messages.

Businesspeople

Individuals engaged in commercial, industrial, or professional activities, aiming to achieve economic or organizational goals.

Direct Approach

A communication strategy that involves straightforwardly presenting the main point or purpose at the beginning.

Business Reports

Formal documents that provide information, analysis, and recommendations to help businesses make informed decisions.