Problemtwo ipos will commence trading next week scott, Ask an Expert

Accounting

Problem:

Two IPOs will commence trading next week. Scott places an order to buy 300 shares of IPO A. Steve places an order to purchase 300 shares of IPO A and 300 shares of IPO B. Both IPOs are priced at $20 a share. Scott is allocated 100 shares of IPO A. Steve is allocated 100 shares of IPO A and 300 shares of IPO B. At the end of the first day of trading, IPO A is selling for $22.70 a share and IPO B is selling for $18.60 a share.

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Question: What is the difference in the total profits or losses that Scott and Steve have as of the end of the first day of trading?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171869

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