An investment adviser has placed a block trade for 500,000 shares of ABCD stock. The trade is filled in 5 separate lots of 100,000 shares each, at prices ranging from $13.56 to $14.04 per share. The adviser must allocate the shares to customers on a:

Pro-rata basis across all customers participating in the block.

Explanation:

Pro-rata basis in Business finance means that the resource being distributed which in this case is shares should be distributed according to the proportion of shares applied for by customers.

Essentially, the adviser should allocate a proportion of shares to the corresponding proportion of application requests by customers. This is usually used when shares are oversubscribed or differently priced as in the above.

For instance, If there were 3 customers and Customer 1 applied for 50,000 shares, Customer 2 applied for 30,000 and Customer 3 applied for 20,000. If there were only 10,000 shares available then using the Pro-rata basis, Customer 1 would get 5,000 shares, Customer 2 would get 3,000 and Customer 3 would get 2,000.

answer: b. false

the staff is a set of five horizontal lines and four spaces which represent a different musical pitch. the lines and the spaces are numbered from bottom to top, the bottom line is the first line and the fifth line is the line on the top. the notes on the top of the staff (fifth line) have a higher pitch than a note at the bottom of the staff.