Question

A company whose common stock has a par value of $50 per share would be unable to issue stock if

investors are unwilling to pay more than--------
-per share.
O a. 70
b. 10
O c. 50
O d. 60

Answer 1

Answer: The correct answer is "stop-buy order with a specified purchase price of $55 per share.".

Explanation: An investor sold a stock short a year ago for $50 per share. The stock's price is currently $52 per share. If the investor is unwilling to accept a loss of more than $5 per share on the short sale transaction, she could place a stop-buy order with a specified purchase price of $55 per share.

In this way there would be a difference of $ 5 between $ 50 and the specific purchase price of $ 55 and placing a stop-buy order on that price per share so as not to lose more than $ 5 per share.

Step-by-step explanation: