An order book displays the following information:
$\begin{array}{cccc}
\text { Buy Orders}& \text { Sell Orders}\
\hline \text { Shares }\quad \text { Price } & \text { Shares } \quad \text { Price } \
200 \quad \$ 18.15 & 100 \quad \$ 18.17 \
300 \quad \$ 18.14 & 500 \quad \$ 18.18 \
100 \quad \$ 18.14 & 100 \quad \$ 18.19
\end{array}$

You place a market order to sell 500 shares. What is the total you will receive for your order?
A)$9,070
B)$9,072
C)$9,075
D)$9,085
E)$9,090

Question

An order book displays the following information:
$\begin{array}{cccc}
\text { Buy Orders}& \text { Sell Orders}\
\hline \text { Shares }\quad \text { Price } & \text { Shares } \quad \text { Price } \
200 \quad  \$ 18.15 & 100 \quad  \$ 18.17 \
300 \quad  \$ 18.14 & 500 \quad  \$ 18.18 \
100 \quad  \$ 18.14 & 100 \quad  \$ 18.19
\end{array}$

You place a market order to sell 500 shares. What is the total you will receive for your order?
A)$9,070
B)$9,072
C)$9,075
D)$9,085
E)$9,090

Quizplus · Accepted Answer

To fill a market order to sell 500 shares, the order will be matched with the buy orders starting from the highest price. The first 200 shares will be sold at $18.15, and the remaining 300 shares will be sold at $18.14. The total received is (200 * $18.15) + (300 * $18.14) = $3,630 + $5,442 = $9,072.

An Order Book Displays the Following Information You Place a Market Order to Sell 500 Shares