Question

A customer places an order to sell 100 ABC at 21 Stop Limit, when ABC stock is trading at $23. The company is restructuring and has announced a special dividend of $.72 to be paid to shareholders of record. On the ex date, the order will:

Answer 1

Reduce to $20.28

Step-by-step explanation:

Calculation for what the order will be On the ex date,

Using this formula

Order =Stop limit-Dividend

Let plug in the formula

Order=21 Stop Limit-$.72

Order= Reduce to $20.28

Therefore based On the information given on the ex date, the order will: Reduce to $20.28