Question

The Specialist (now called the DMM - Designated Market Maker) is quoting the stock at $40.00 Bid with a size of 250 (good for 250 x 100 = 25,000 shares); and $40.02 Ask with a size of 150 (good for 150 x 100 = 15,000 shares). This customer is placing an order to sell 25,000 shares at the market. Since the Specialist/DMM is willing to Buy 25,000 shares at the current Bid of $40.00, the order will be filled in full at the current Bid.

Answer 1

The subject of this question is Business, specifically related to stock trading and market making. In this scenario, the student is asking about how a sell order for 25,000 shares of a stock will be filled at the market. The answer states that since the Specialist/DMM is willing to buy 25,000 shares at the current bid price of $40.00, the sell order will be filled in full at that price.

Step-by-step explanation:

The subject of this question is Business, specifically related to stock trading and market making.

In this scenario, the student is asking about how a sell order for 25,000 shares of a stock will be filled at the market. The information provided includes the bid and ask prices, as well as the sizes of the bid and ask orders.

The answer states that since the Specialist/DMM is willing to buy 25,000 shares at the current bid price of $40.00, the sell order will be filled in full at that price.