What are you telling your broker? Given market prices, will your order be executed? 8. Do you think it is possible to replace market-making specialists by a fully automated computerized trade-matching system? I. Introduction 3. How Securities Are Traded The McGraw−Hill Companies, 2001           CHAPTER 3 How Securities Are Traded 99     9. Consider the following limit-order book of a specialist. The last trade in the stock took place at a price of $50.     Limit-Buy Orders Limit-Sell Orders   Price ($) Shares Price ($) Shares   49.75 500 50.25 100 49.50 800 51.50 100 49.25 500 54.75 300 49.00 200 58.25 100 48.50 600     a. If a market-buy order for 100 shares comes in, at what price will it be filled? b. At what price would the next market-buy order be filled? c. If you were the specialist, would you desire to increase or decrease your inventory of this stock? 10. What purpose does the Designated Order Turnaround system (SuperDot) serve on the New York Stock Exchange? 11. Who sets the bid and asked price for a stock traded over the counter? Would you expect the spread to be higher on actively or inactively traded stocks? 12. Consider the following data concerning the NYSE:     Average Daily Trading Volume Annual High Price of an Year (Thousands of Shares) Exchange Membership