If you offer to sell shares of Ford stock at $18.85 per share while the market price is lower, how many shares would you sell?

If you offer to sell shares of Ford stock at $18.85 per share while the market price is lower, how many shares would you sell?

• A. 10,000 shares
• B. 5,000 shares
• C. 0 shares
• D. 1,000 shares

Answer: (C)

Selling shares at a price set higher than the current market price typically results in zero sales because buyers are unlikely to purchase shares at a premium when they can acquire them for less in the market. In this scenario, with the market price of Ford stock being lower than the offered price of $18.85 per share, there is no incentive for buyers to agree to the sale. Buyers generally seek to maximize value, and purchasing shares above the prevailing market price would not align with that goal. Therefore, the only logical outcome in this case is that no shares are sold, reinforcing the idea that the selling price must be competitive with the market to attract buyers.

Selling shares at a price set higher than the current market price typically results in zero sales because buyers are unlikely to purchase shares at a premium when they can acquire them for less in the market. In this scenario, with the market price of Ford stock being lower than the offered price of $18.85 per share, there is no incentive for buyers to agree to the sale.

Buyers generally seek to maximize value, and purchasing shares above the prevailing market price would not align with that goal. Therefore, the only logical outcome in this case is that no shares are sold, reinforcing the idea that the selling price must be competitive with the market to attract buyers.