Suppose a portfolio manager decides to buy 100,000 share of…
Suppose a portfolio manager decides to buy 100,000 share of ABC stock based on the stock price of $42.00. He sends it to a broker, and when the broker receives the order the price is already $42.50. The broker buys the 100,000 share of ABC stock for a volume-weighted average price of $42.75. The broker charges a commission of $0.05 per share. Which statement below is correct?
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