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A dealer buys 100 shares of XYZ common, which is an actively traded stock, at 23.50. Three days later, when XYZ common is quoted at 19.50 - 19.75, he sells the 100 shares to a customer.
The basis for the dealer's markup is:
A. 19 7/8
B. 23 1/2
C. 10 5/8
D. 5% above cost
Answer: A
Explanation:
Explanation/Reference:
Explanation: 19 7/8. The markup is always based on the current market price, not upon cost. Therefore, the markup is based on the offering side of the current quotation.

NEW QUESTION: 2
Tax rates on income are: 0% for up to 5000 EUR, 10% is added for each additional 5000 EUR up to 20,000 EUR, and 40% is applied for above20,000 EUR, which test inputs in EUR would be selected for valid equivalence partitions?
A. -1000, 4000, 9000, 14000, 19000, 24000
B. 3000, 8000, 16000, 20000, 25000
C. 3000, 6000, 12000, 19000, 30000
D. 3000, 18000, 30000
Answer: C

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