Buying Stock with a Market Order You would like to buy shares of International Business Machines (IBM).The current bid and ask quotes are $96.17 and $96.24,respectively.You place a market buy-order for 100 shares that executes at these quoted prices.How much money did it cost to buy these shares?
A)$7.00
B)$9,617.00
C)$9,624.00
D)$19,241.00

Question

Quizplus · Accepted Answer

The market order will execute at the best available price, which is the ask price of $96.24 per share. Therefore, to buy 100 shares, the cost is:
$96.24 x 100 = $9,624.00. The correct answer is choice C.

Buying Stock with a Market Order You Would Like to Buy