Maya Is a Stockbroker

question 15

Multiple Choice

Maya is a stockbroker.Nora believes that the price of OK Goods,Inc.(OKGI) ,a widely traded stock,is going to increase substantially.Through Maya,Nora buys 500 shares of OKGI at $10 per share,but the price soon drops to $2.Nora can successfully recover from Maya

• A)nothing.
• B)the amount of the purchase price.
• C)the amount of the purchase price plus the expected increase.
• D)the amount of the purchase price plus the unexpected decrease.

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Definitions:

Inventory

The total amount of goods or materials that a company or business has in stock, waiting to be sold or used.

Costs of Overstocking

Expenses related to holding excess inventory, including storage, insurance, and losses due to obsolescence or deteriorating items.

Costs of Understocking

Expenses incurred due to insufficient inventory levels, leading to lost sales, backorders, and potentially damaged customer relationships.

Cycle Service Level

A performance metric that measures the probability of meeting customer demand without stockouts within a given inventory cycle.