The Bid Price for Sun Microsystems (JAVA)is Currently $16

question 19

Multiple Choice

The bid price for Sun Microsystems (JAVA) is currently $16.22 and its ask price is $16.23. Your broker charges a commission of $13 per transaction. What are the total costs of buying and
Selling 1,000 shares of JAVA as a percentage of the invested dollars?

• A)0.22%
• B)0.43%
• C)0.02%
• D)0.18%

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Definitions:

Voting Stock

Shares in a company that grant the holder the right to vote on company matters, such as electing the board of directors.

Contingent Payment

A payment that is due only upon the occurrence of certain events specified in a contractual agreement.

Cash Flows

The overall volume of cash inflows and outflows within a business, significantly affecting its financial fluidity.

Probability-Weighted

An approach to decision-making or forecasting that involves taking into account the likelihood of various outcomes, each weighted by its probability.