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On March 15, Marcos Placed a Good-'Til-Canceled Order to Buy

question 73

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On March 15, Marcos placed a good-'til-canceled order to buy 200 shares of ABC at $10 a share.ABC sold between $10.50 and $11.00 on that day.Over the following two months the stock price continued to rise and Marcos forgot about the order.After the markets closed on June 6, some bad news concerning ABC was released.The stock opened on June 7 at a price of $8.00 a share.Which one of the following statements is correct concerning Marcos' order?


Definitions:

Market Price

The ongoing cost for buying or selling an asset or service within a market setting.

Acid-Test Ratio

A stringent indicator of a company's liquidity, calculated by dividing liquid assets excluding inventories by current liabilities.

Company

A business organization founded by a group of individuals dedicated to pursuing and administering a commercial or industrial venture.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and accounts receivable).

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