3. Obtain a current quote of McDonald’s (MCD) from the Internet. Describe what has changed since the quote in Figure 8.1. (
Get the trading statistics for the three main U.S. stock exchanges. Compare the trading activity to that of Table 8.1. (LG8-2)
9. Describe the difference in the timing of trade execution and the certainty of trade price between
market orders and limit orders. (LG8-4)
Market orders can be executed immediately if a customer requests a purchase or a sale of stock. The
customer is willing to buy or sell at the existing market price. On the other hand, Limited orders
cannot be executed immediately but the customer sets price boundaries at which they are able to buy
or sell the stock.
12. Under what conditions would the constant-growth model not be appropriate? (LG8-5)
The model does not work when stock does not pay dividends and when there are not buybacks of
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