- Tax Planning
- Investments 1: Before you Invest
- Investments 2: Your Investment Plan
- Investments 3: Securities Market Basics
- Investments 4: Bond Basics
- Investments 5: Stock Basics
- Investments 6: Mutual Fund Basics
- Investments 7: Building Your Portfolio
- Investments 8: Picking Financial Assets
- Investments 9: Portfolio Rebalancing and Reporting
- Retirement 1: Basics
- Retirement 2: Social Security
- Retirement 3: Employer Qualified Plans
- Retirement 4: Individual and Small Business Plans
- Estate Planning Basics
Case Study #1
Data
After studying the fundamental trends in CHKP Company’s annual report and doing a lot of research, Steve decided to purchase one round lot of the firm’s stock on the open market. On Monday morning he calls a stockbroker and asks for the price of CHKP stock. The broker indicates that CHKP is bidding at $45.12 with an asking price of $45.20.
Calculations
a. Assuming you want to place a market order to purchase shares, how much will you most likely pay (assume there are no major moves in the stock price)?
b. What are the advantages and disadvantages of a limit order versus a market order?
