Richard Placed an Order for 1,000 Shares in Each of Three

question 52

Multiple Choice

Richard placed an order for 1,000 shares in each of three IPOs at $28 a share. He was allocated 1,000 shares of IPO A, 200 shares of IPO B, and 600 shares of IPO C. On the first day of trading, IPO A opened at $28 a share and ended the day at $24.25 a share. IPO B opened at $30 a share and finished the day at $37 a share. IPO C opened at $28 a share and ended the day at $27.65 a share. What is the total profit or loss on these three IPO purchases as of the end of the first day of trading?

• A) − $2,160
• B) − $1,850
• C) − $1,950
• D) $2,240
• E) $2,175

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Definitions:

Motivation

The psychological forces or factors that influence an individual's direction, intensity, and persistence of voluntary behavior, particularly in goal-oriented activities.

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Systems Thinking

An analytical approach that focuses on understanding the interconnections and patterns among different components within a system rather than viewing them in isolation.

Contingency Thinking

A management approach that emphasizes the need for flexibility and adaptation to changing circumstances.