Stefan Places a Good-'Til-Canceled Limit Order to Sell 200 Shares

question 108

Multiple Choice

Stefan places a good-'til-canceled limit order to sell 200 shares of MRK at $76 a share. When his order reaches the trading floor, MRK is trading at $76.48. Which of the following statements is true concerning Roy's order?

• A) The trade will not be executed and will be immediately cancelled.
• B) The order will only be executed if it can be matched with an order to buy at $76.
• C) The broker will sell the 200 shares at $76.48 and keep the additional $0.48 as a commission.
• D) The order will be executed at $76.48 with the proceeds credited to Stefan's account.

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Definitions:

Social Power Distance

The extent to which individuals or societies accept and expect unequal distribution of power and authority.

Collectivistic Cultures

Cultures that emphasize the needs and goals of the group over those of the individual.

Network Density

A measure of how closely knit individuals in a network are, based on the number of connections compared to the total possible connections.

Team Potency

The collective belief among team members that they can be effective and achieve their goals together.