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Alex bid $24 a share for 500 shares in a Dutch auction for ABC shares of stock. The other bids were $25 for 200 shares, $23 for 600 shares, $26 for 100 shares, and $22 for 500 shares. ABC was seeking the sale of 1,000 shares. What price did Alex have to pay for each share he obtained

Respuesta :

Answer:

$23

Explanation:

ABC will sell based the lowest bid starting from the highest bid until all the 1,000 shares are allotted downwards as follow:

Number shares to bid of $26 for 100 shares = 100 shares

Number shares to bid pf $25 for 200 shares = 200 shares

Number shares to Alex's bid of $24 for 500 shares = 500 shares

Number shares to bid of $23 for 600 shares = 200 shares

Under Dutch auction, the lowest bid price of all the allotted or successful  bidders will be paid by all the successful bidders.

Since the $23 is the lowest successful bid price,  Alex ad to pay $23 for each share he obtained

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