Suppose you decide to use limit orders instead of market orders. On September 14
you put in a limit order to buy 500 shares of BUFN at $14.58 per share. On
September 15 you put in a limit order to sell 500 shares of BUFN at $15.08 per share.
Both orders were executed on their respective days. Assuming no brokerage
commissions, how much of a gain or loss did you make?
Gain of $.50x500 = 250.
What are the trade-offs between using market orders and limit orders?
Market order are instant, limit order can take time.
What financial statements can be found in a firm's annual report? What
checks exist to ensure the accuracy of these statements?
In a firm's annual report, four financial statements can be found; Balance sheet, income
statement =, cash flow, and shareholders equity. Financial Statements need to be audited by
an independent third party.
xConsider the following potential events that might have occurred at Global on
December 30, 2018. For each one, indicate which line items in Global's statement of
financial position would be affected and by how much. Also indicate the change to
Global's book value of equity.
Decrease of 5m
Equity would decrease
What was the change in Global's book value of equity from 2017 to 2018
according to Table 2.1? Does this imply that the market price of Global's
shares increased in 2018? Explain.