Suppose buy orders are placed for twice as many shares of a stock as the number of shares offered for sale in a one-hour period. What would be the relationship (higher, lower, or the same) between the reported trading price just before and just after that one-hour period, assuming no other events occurred?
What kind of experience have you had with stock purchases?
Why do many business managers feel that ethical behavior is essential to the profitability and survival of their firm?
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Assuming no other events occurred, this would increase the trading price just before due to increased demand and would likely decrease the price just after. The actual determining factor as to what effect it would have just after the trading period would be based on additional market factors, but we could reasonably assume that it would decrease due to the increase in supply available and the close of the trading window (excess surplus = decline in price).
I have had several personal and professional experiences with stock prices. As an individual investor, I have ...
This solution provides detailed explanations for each of the corporate financial management issues presented.