Question

Question 2 (1 point)
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A year ago, Rebecca purchased 100 shares of Havad stock for $20 per share.
Yesterday, she placed a limit order to sell her stock at a price of $33 per share before
the market opened. The stock's price opened at $23 and slowly increased to $26 in
the middle of the day, before declining to $22 by the end of the day. The stock did
not pay any dividends over the period in which Rebecca held it. Given Rebecca's
initial investment of $ 20 per share, her return is

Answer 1

Answer:

Rebecca does not have a return yet because the stock was not sold since there was a limit order at $33.

However, the value of her investment can be put around $2,400 (100 x $24 average price).

Step-by-step explanation:

Price of Havad Stock bought a year ago = $20

No. of shares = 100

Limit order selling price = $33

Stock prices during the limit order day = $23, $26, and $22

The stock cannot be sold, since its price did not reach $33.

Rebecca's limit order is an order to buy or sell her stock in Havad at $33 or better. Since her order is a sell limit order, it can only be executed at the limit price of $33 or higher.  Unfortunately, the price of the stock did not reach the limit order on that particular day.  This implies that her limit order is not guaranteed to execute.