Question

the real-time quotation of Stock A listed on HKEX.

LOT SIZE: 500

OPEN: $3.22

BID: $3.38

ASK: $3.40

LAST: $3.39

CHG: -$0.14

EPS: $0.25

MKT CAP: 22.3 b

(a) If you want to purchase Stock A immediately, what is the price that you should set in your buy order?

(b) After your purchase in (b), when will you become the legal owner of Stock A?

Answer 1

Given,

a)$ 3.39 is the last traded price

If we want to buy the share,then we have to look at the Ask price ( Because that is the price someone is offering to sell the shares)

Given Ask price = $ 3.40

Lot size = 500,

Amount required to pay to purchse 1 lot = 500*$ 3.40=1700

Less: Chage Adjustment( 500*0.14) = (70)

Net amount should be paid = 1630

$ 1630 is neede to purchase a single lot

b)If an investor purchases the stock today, then the shares are credited in his accounts after T+2 Days( i.e 3 days including Trade day).So on 3rd day he will become the legal owner of the stock.