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problem 1

As a broker on the financial market, you have to following unfilled limit order book for security "X":

1. You have received a market order to sell 60 shares of stock "X". What will you do? *

a. Add the new order to the unfilled limit order book

b. Match the market order to sell 60 shares of stock "X" with the unfilled limit order to sell at $33.78.

c. Match the market order to sell 60 shares of stock "X" with the unfilled limit order to buy at $33.41

d. Match the market order to sell 60 shares of stock "X" with the unfilled limit order to buy at $33.53

e. None of the above

2. Assume that you receive a limit order to buy 110 shares of stock "X" at $33.68. What will you do? *

a. Add the new order to the unfilled limit order book.

b. Match the limit order to buy 110 shares of "X" at $33.68 with the unfilled limit order to buy at $33.53

c. Match the limit order to buy 110 shares of "X" at $33.68 with the unfilled limit order to sell at $33.62

D. Match the limit order to buy 110 shares of "X" at $33.68 with the unfilled limit order to sell at $33.78

e. None of the above

problem 2

Jammal Co. has just launched its initial public offering IPO with the help of Investigo, a multinational investment bank. During the IPO, the firm issued 8 million new shares. The initial price was $28 per share, with Investigo retaining $3.2 fees. The first day closing price was $33.6.

1. Which of the following statements is CORRECT? *

a. The gross proceeds from the offering were equal to $224 million and Investigo has received 12.90% of it.

b. The gross proceeds from the offering were equal to $198.4 million and Investigo has received 12.90% of it.

c. The gross proceeds from the offering were equal to $198.4 million and Investigo has received 11.43% of it.

d. The gross proceeds from the offering were equal to $224 million and Investigo has received 11.43% of it.

e. None of the above

2. What was the market value of Jammal Co. following its first day as a publicly-held company? *

a. $224,000,000

b. $198,400,000

c. $268,800,000

d. $210,500,000

e. None of the above

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