7. 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, Charles purchased 150 shares of an exchange traded fund (ETF) specializing in consumer staples for $90.24 per share. Charles is comfortable holding on to his shares in the face of minor fluctuations, but does not want to risk the share value falling far below his purchase price. He therefore considers placing a limit order so that all 150 shares would be sold if the share price falls to $88. stop The follow s depict two hypothetical paths for the share value of Charles's ETF over the course of the next six months. Complete the sentenced limit th graph to describe what would happen if Charles placed the preceding order under each of the two circumstances. market 100 Assignment Chapter 11 Investment Planning The following graphs depict two hypothetical paths for the share value of Charles's ETF over the course of the next six months. Complete the sentences below each graph to describe what would happen if Charles placed the preceding order under each of the two circumstances. SHARE VALUE MG 0 2 MONTHS IN FUTURE In the preceding scenario, his order would be activated order would and executed at over the six month period thus the Assignment: Chapter 11 Investment Planning th 06 SHARE VALUE 0 + MONTHS IN FUTURE In the preceding scenario, his order would be activated order would and executed at over the six month period. 7thus the True or False I instead the stock price had risen steadily and never fallen below $88, placing the order would have acted as a safeguard but would havetsad no real effect True False