1. stop/limit/market

2. after 2months/after 1 month/when the market opened/ after 4 months/ after 3 months/at no point in this period/ after 5 months

3. no point in this period/ the Best available price/exactly $88

4. limit his losses/act as a safeguard but have no real affect/prevent him from earning large gains

5. after four months/after one month/after five months/when the market opened/at no point in this period/After two months/after three months

6. exactly $88/the best price availableo point in this period

7. limit his losses/prevent him from earning large gains/act as a safeguard but have no real affect

. Understanding limit and stop orders Understanding How Trade Orders Work Different trade orders such as market orders, limit orders, and stop-loss orders are created to give investors the liberty to manage their securities based on their expectations out of the investments. Albert purchased 150 shares of an exchange traded fund (ETF) specializing in energy for $90.24 per share. Albert is comfortable holding on to his shares in the face of minor fluctuations, but does not want to risk the share value falling for below his purchase price. He therefore considers placing a order so that all 150 shares would be sold if the share price falls to $88. The following graphs depict two hypothetical paths for the share value of Albert's ETF over the course of the next six months. Complete the sentences below each graph to describe what would happen i Albert placed the preceding order under each of the two circumstances. 100 a 8 SHARE VALUE ; thus the In the preceding scenario, his order would be activated order would and executed at over the six month period. 100 22 SHARE VALUE 88 34 NO 0 MONTHS IN FUTURE thus the In the preceding scenario, his order would be activated order would and executed at over the six month period True or False: 1 instead the stock price had risen steadily and never fallen below $88, placing the order would have acted as a safeguard but would have had no real effect True False