PROBLEM EXERCISES: If you are an investor, identify the minimum number of shares you can buy and compute the gross transaction amount of the following: NAME OF COMPANY PRICE PER SHARE URC PHP 4.75 ABS-CBN PHP 1.12 SAN MIGUEL CORP. PHP 16.66 JOLLIBEE PHP 5.03 GLOBE PHP 35.75
PROBLEM EXERCISES: If you are an investor, identify the minimum number of shares you can buy and compute the gross transaction amount of the following: NAME OF COMPANY PRICE PER SHARE URC PHP 4.75 ABS-CBN PHP 1.12 SAN MIGUEL CORP. PHP 16.66 JOLLIBEE PHP 5.03 GLOBE PHP 35.75
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:MINIMUM AMOUNT/NUMBER OF SHARES YOU CAN INVEST IN THE STOCK MARKET.
-For each stock, the minimum amount of shares to be traded is fixed and depends on the price
range of the stock.
THE BOARD LOT TABLE
PRICE
TICK SIZE
LOT SIZE
Board Lot Table determines the minimum number of shares
From
То
one can purchase or sell at a specific price range. Therefore,
1,000,000
100,000
10,000
10,000
1,000
0.0001
0.0099
0.0001
the minimum amount needed to invest in stocks varies and
0.01
0.049
0.001
will depend on the market price of the security as well as its
corresponding board lot.
0.05
0.249
0.001
0.25
0.495
0.005
0.5
4.99
0.01
5
9.99
0.01
100
TICK SIZE-A minimum change in price, up or down.
10
19.98
0.02
100
20
49.95
0.05
100
ΕΧΑMPLE:
50
99.95
0.05
10
An investor wishes to buy a stock whose market price is PHP
100.00 per share.
100
199.9
О.1
10
200
499.8
0.2
10
500
999.5
0.5
10
What is the minimum number of shares that the investor can
1000
1999
1
5
buy?
2000
4998
2
5000
UP
BOARD LOT TABLE
= 10
(PHP 100-199.9)
shares
Transcribed Image Text:GROSS TRANSACTION AMOUNT= (MINIMUM NUMBER OF
SHARES) (PRICE PER SHARE)
= (10 SHARES)(php100.00)
=PHP 1,000.00
PROBLEM EXERCISES:
If you are an investor, identify the minimum number of shares you can buy and compute
the gross transaction amount of the following:
NAME OF COMPANY PRICE PER SHARE
URC
PHP 4.75
ABS-CBN
PHP 1.12
SAN MIGUEL CORP.
PHP 16.66
JOLLIBEE
PHP 5.03
GLOBE
PHP 35.75
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