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8. a. How does a stop order differ from a limit order? b. Suppose that a given market accepts only market and limit orders. Which

8.

  • a. How does a stop order differ from a limit order?
  • b. Suppose that a given market accepts only market and limit orders. Which of these two order types are more likely to be placed by buy-side market participants? Why?
  • c. Again, suppose that a given market accepts only market and limit orders. Which of these two order types are more likely to be placed by sell-side market participants? Why?

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