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what if an investor wants to buy 1,000 shares of apple at the market price, but the nbbo ask price of $100.02 is for only 200 shares? the first 200 shares will be sold at $100.02 after which a new nbbo price will be calculated. all shares will be sold at $100.02. the nbbo price will be recalculated and all shares will be sold for the same price. the nbbo price will be ignored and the ask price will be accepted. the nbbo price will be ignored and the highest bid accepted.

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varshamittal029

The investor would consider buying the first 200 shares at National Best Bid and Offer(NBBO) ask price rather than market price because NBBO gets the lowest ask price across all the stock exchanges.

Since it is already mentioned that first 200 share ask price is $100.02 they are sold first and then a new price is calculated for the remaining 800 shares(1000-200) by NBBO.

The National Best Bid and Offer (NBBO) is a quote that summarizes the highest bid price and lowest ask price for a security across all exchanges or trading venues that are open for business.

The NBBO displays the best (lowest) ask price and best (highest) bid price that users can access across various exchanges.

Brokers are required by the SEC's Regulation NMS to guarantee their customers at least the NBBO stated price at the time of a trade.

Security Information Processors (SIP) compute and distribute the NBBO

Although it guarantees that every investor receives the best pricing when placing trades, NBBO might not always represent the most recent data, leading to trades that do not correspond to investor price expectations.

Learn more about ask price, bid price here

https://brainly.com/question/17014625

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