You are a broker and have been instructed to place an order for a client to purchase 500 shares of every IPO that comes to market

56.

Bakers' Town Bread is selling 1,200 shares of stock through a Dutch auction. The bids received are as follows:     How much cash will Bakers' Town Bread receive from selling these shares of stock? Ignore all transaction and flotation costs.    A.  $10,800 B.  $12,000 C.  $13,400 D.  $14,400 E.  $16,800 Total cash received = 1,200 × $10 = $12,000

57.

Webster Electrics is offering 1,500 shares of stock in a Dutch auction. The bids include:     How much cash will Webster Electrics receive from selling these shares? Ignore all transaction and flotation costs.    A.  $28,500 B.  $30,000 C.  $31,500 D.  $33,000 E.  $34,500 Total cash received = 1,500 × $22 = $33,000

58.

You are a broker and have been instructed to place an order for a client to purchase 500 shares of every IPO that comes to market. The next two IPOs are each priced at $25 a share and will begin trading on the same day. The client is allocated 500 shares of IPO A and 100 shares of IPO B. At the end of the first day of trading, IPO A was selling for $23.50 a share and IPO B was selling for $29 a share. What is the client's total profit or loss on these two IPOs as of the end of the first day of trading?    A.  -$425 B.  -$350 C.  $525 D.  $975 E.  $1,150 Total profit = [500 × ($23.50 - $25)] + [100 × ($29 - $25)] = -$350