Selling Stock with a Limit Order You would like to sell 400 shares of International Business Machines (IBM).The current bid and ask quotes are $96.24 and $96.17,respectively.You place a limit sell-order at $96.20.If the trade executes,how much money do you receive from the buyer?
A)$38,464.00
B)$38,468.00
C)$38,480.00
D)$38,496.00

Question

Quizplus · Accepted Answer

Since you are selling 400 shares, you will receive:
400 x $96.20 = $38,480.00

The limit sell-order at $96.20 will only execute if the bid reaches or exceeds that price. Therefore, since the bid is currently $96.24, your sell-order will execute and you will receive $38,480.00 from the buyer.

Selling Stock with a Limit Order You Would Like to Sell