hard · Market Microstructure
A matching engine uses a pro-rata allocation rule. There are three limit orders resting at the best bid of $25.00: Order A for 1,000 shares, Order B for 600 shares, and Order C for 400 shares. A market sell order for 500 shares arrives.
How many shares are allocated to Order B?
- 0 shares
- 166 shares
- 500 shares
- 150 shares
Sign up free to see the explanation and track your rank →
More Market Microstructure practice
- A stock is quoted at $50.00 bid x $50.10 ask. A buyer submit… — How does this action affec
- A stock is trading at $100.00. The Level 1 S&P 500 Market-Wi… — What is the status of trad
- If the stock price drops instantly from $50.05 to $49.00 in a 'flash crash,' what happens
- Under the National Market System (Reg NMS), if Exchange A is quoting a stock at $10.00 x
- If the stock gaps down and opens at $69.50 on Tuesday morning, at what price will the trad
- If the dealer uses a quote shading parameter of κ = 0.00004 to manage inventory, what is t
- A trader places a large sell order for 50,000 shares at $50.01 only to cancel it immediate
- Using the Lee-Ready algorithm, how should a trade occurring at $50.10 following a $50.00 t