good-'til-canceled order to buy 200 shares of ABC at $10 a share. ABC sold between $10.50 and $11.00 on that day. Over the following two months the stock price continued to rise and Marcos forgot about the order. After the markets closed on June 6, some bad news concerning ABC was released. The stock opened on June 7 at a price of $8.00 a share. Your friends and you are having a discussion about the status of Marcos’s order on June 7. The f
good-'til-canceled order to buy 200 shares of ABC at $10 a share. ABC sold between $10.50 and $11.00 on that day. Over the following two months the stock price continued to rise and Marcos forgot about the order. After the markets closed on June 6, some bad news concerning ABC was released. The stock opened on June 7 at a price of $8.00 a share. Your friends and you are having a discussion about the status of Marcos’s order on June 7. The f
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On March 15, Marcos placed a good-'til-canceled order to buy 200 shares of ABC at $10 a share. ABC sold between $10.50 and $11.00 on that day. Over the following two months the stock price continued to rise and Marcos forgot about the order. After the markets closed on June 6, some bad news concerning ABC was released. The stock opened on June 7 at a price of $8.00 a share. Your friends and you are having a discussion about the status of Marcos’s order on June 7. The following views are expressed: 1. That the order was cancelled on May 15 because it had not been executed within the allowable two-month time period. 2. That the order was executed on March 15 at $10.50 a share since that was the best available price of the day. 3. That the order was executed on June 7 at a price of $10.00 a share. Resolve the matter by either choosing a correct view from the above .
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