Revised benchmark price

[gonowpass]

Example 1
On Wed stock price closes at $20.
On Thu manager submits a limit ordr for 1,000 shares at $19.95. The price never falls to $19.95 so the order expires unfilled. The stock closes at $20.05.
On Fri the order is revised to a limit of $20.06.
Decision price = $20
Revised benchmark price = $20.05
Example 2.
Trader receives an order from a portfolio manager at $23.
The price the trader places the order is $23.15
Decision price = $23
Revised benchmark price =$23.15
Using the approach of example 2 in example 1, why isn’t example 1 revised benchmark price = $20.06. I am a bit confused, can someone please explain how these differ?

 

[cokemicho]

gonowpass wrote:
Example 1
On Wed stock price closes at $20.
On Thu manager submits a limit ordr for 1,000 shares at $19.95. The price never falls to $19.95 so the order expires unfilled. The stock closes at $20.05.
On Fri the order is revised to a limit of $20.06.
Decision price = $20
Revised benchmark price = $20.05
Example 2.
Trader receives an order from a portfolio manager at $23.
The price the trader places the order is $23.15
Decision price = $23
Revised benchmark price =$23.15
Using the approach of example 2 in example 1, why isn’t example 1 revised benchmark price = $20.06. I am a bit confused, can someone please explain how these differ?

Hello!! the benchmark price changes once the order expires (every day change) as i understand. You can notice in example 2 that you have only 1 day. In example 1 the trading process lasted 2 days.
Regards

 

[gonowpass]

cokemicho wrote:

gonowpass wrote:
Example 1
On Wed stock price closes at $20.
On Thu manager submits a limit ordr for 1,000 shares at $19.95. The price never falls to $19.95 so the order expires unfilled. The stock closes at $20.05.
On Fri the order is revised to a limit of $20.06.
Decision price = $20
Revised benchmark price = $20.05
Example 2.
Trader receives an order from a portfolio manager at $23.
The price the trader places the order is $23.15
Decision price = $23
Revised benchmark price =$23.15
Using the approach of example 2 in example 1, why isn’t example 1 revised benchmark price = $20.06. I am a bit confused, can someone please explain how these differ?

Hello!! the benchmark price changes once the order expires (every day change) as i understand. You can notice in example 2 that you have only 1 day. In example 1 the trading process lasted 2 days.
Regards

The definition of revised benchmark price (BP*) is the market price of the security if the order is not completed in a timely manner as defined by the user.
So does that mean in example 2 there is actually no revised benchmark price, only a decision price since example 2 is the same day?

 

[gonowpass]

Is anyone else able to please explain why revised benchmark price in the below is 23.15?
Trader receives an order from a portfolio manager at $23.
The price the trader places the order is $23.15
Decision price = $23
Revised benchmark price =$23.15

 

[MrSmart]

Benchmark price is the close, or the last available trading price.