TDF Dealer's liability desk purchases 5,000 shares of a stock with a market order at $15 bid, $15.20 ask. The desk later sells the shares with a market order at $15.25 bid, $15.40 ask. What is TDP Dealer's gain on the trades?
Buying Price:5,000 shares purchased at $15.20 = $76,000.
Selling Price:5,000 shares sold at $15.25 = $76,250.
Profit Calculation:$76,250 - $76,000 =$1,000.
This reflects the gain from executing the market orders at the respective bid-ask prices.
[Reference: Volume 1, Chapter on Equity Transactions, Section on Calculating Trading Gains and Losses​., , ]
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit