3 points Save
When Patricia sells her General Motors common stock at the same time that Brian purchases the same amount of General Motor's stock, General Motors receives:
the "spread" between the Bid and Ask of the transaction.
the dollar amount of the transaction, less brokerage fees.
only the par value of the common stock.
nothing.
3 answers
What do you think the answer is?
well this is confusing to me i do not kno what they mean by spread, i do not think the answer is nothing. i think they will get the par value
Brittany or Alisha or Lashay --
The spread is the difference between the price that Brian sells his stock for $12.75 and Patricia buys the stock for $13.00.
The spread is used to pay for the costs of the transaction.
http://www.vanguard.com.au/Personal_Investors/PITopNav/FAQ/index.aspx#Whatisthebuysellspread
When a company such as GM first issues stock, it receives the money for this initial offering. After that, the stock is bought and sold between individual investors. The company only benefits from each transaction by the intrinsic value the investors place on this company. In short, the company doesn't receive anything by buys and sells of its stock.
The spread is the difference between the price that Brian sells his stock for $12.75 and Patricia buys the stock for $13.00.
The spread is used to pay for the costs of the transaction.
http://www.vanguard.com.au/Personal_Investors/PITopNav/FAQ/index.aspx#Whatisthebuysellspread
When a company such as GM first issues stock, it receives the money for this initial offering. After that, the stock is bought and sold between individual investors. The company only benefits from each transaction by the intrinsic value the investors place on this company. In short, the company doesn't receive anything by buys and sells of its stock.
2 answers