You Are a Broker and Have Been Instructed to Place

question 68

Multiple Choice

You are a broker and have been instructed to place an order for a client to purchase 500 shares of every IPO that comes to market.The next two IPOs are each priced at $25 a share and will begin trading on the same day.The client is allocated 500 shares of IPO A and 100 shares of IPO B.At the end of the first day of trading,IPO A was selling for $23.50 a share and IPO B was selling for $29 a share.What is the client's total profit or loss on these two IPOs as of the end of the first day of trading?

• A) -$425
• B) -$350
• C) $525
• D) $975
• E) $1,150

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Definitions:

Generalization

The process of formulating general concepts by abstracting common properties of instances.

Inhibitor

A stimulus signaling that an event is not coming, which elicits a response opposite to the one that the event usually elicits.

Thorndike

An American psychologist known for his work in comparative psychology and the theory of connectionism, emphasizing the role of rewards and punishments in learning.

Reinforcement

A process in operant conditioning that increases the likelihood of a behavior being repeated, either through positive or negative means.