You own shares of a company that are currently trading at ($30) a share. Your technical analysis
Question:
You own shares of a company that are currently trading at \($30\) a share. Your technical analysis of the shares indicates a support level of \($27.50\). That is, if the price of the shares is going down, it is more likely to stay above this level rather than fall below it. If the price does fall below this level, however, you believe that the price may continue to decline. You have no immediate intent to sell the shares but are concerned about the possibility of a huge loss if the share price declines below the support level. Which of the following types of orders could you place to most appropriately address your concern?
A. Short sell order.
B. Good-till-cancelled stop sell order.
C. Good-till-cancelled stop buy order.
Step by Step Answer:
Investments Principles Of Portfolio And Equity Analysis
ISBN: 9780470915806
1st Edition
Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard