You want to buy a share of Acme Corp. stock. Your on-line broker shows a bid price of $30, and has a bid-ask spread of $.50. Assuming you buy “at the market” (i.e., at the prices currently quoted) how much will you pay for a share of the stock? How much will the seller of each share that you buy receive? Explain.

Question

You want to buy a share of Acme Corp. stock.  Your on-line broker shows a bid price of $30, and has a bid-ask spread of $.50.  Assuming you buy “at the market” (i.e., at the prices currently quoted) how much will you pay for a share of the stock?  How much will the seller of each share that you buy receive?  Explain.

MAJ · Answer

Dude, you're in my class at Harvard.

Cole · Answer

HAHA.. Having trouble with this one