Question

On January 27, 2011, the price of Ford Motor Company stock hit an almost 10-year high at $18.79 per share. (Two years prior, in January 2009, Ford stock was trading for about a tenth of that price.) Suppose that on January 27, 2011, you owned 10,000 shares of Ford stock (a small fraction of the almost 3.8 billion shares). Suppose you offered to sell your stock for $18.85 per share, just slightly above the market price. How many shares would you sell?

Answer 1

To determine how many shares you would sell, divide the amount you want to sell by the price per share you offered. In this case, you offered to sell your stock for $18.85 per share. So, the number of shares you would sell is 530.

Step-by-step explanation:

To determine how many shares you would sell, divide the amount you want to sell by the price per share you offered. In this case, you offered to sell your stock for $18.85 per share. So, the number of shares you would sell is:

Number of shares = Amount you want to sell / Price per share

Number of shares = 10,000 / $18.85

Number of shares = 530.58

Since you cannot sell a fraction of a share, you would sell 530 shares.