Market Efficiency and Mutual Funds Flashcards
1
Q
what is a limit order
A
the desire to transact a certain number of shares (Buy and Sell Orders)
2
Q
when does a trade occur?
A
when there is a buy order higher than a sell order
3
Q
what is the bid ask spread
A
the difference between th e lowest asks and the highest bids
4
Q
What is Market Price
A
an outcome of the trading process
5
Q
what is intrinsic value (Stock market)
A
present value of expected future cash flows (DCF / Relative Valuation)
