Question
ABC bought 1000 share a year ago at P21 per share. Now, the stock price is P 25 per share. ABC thinks that the stock
ABC bought 1000 share a year ago at P21 per share. Now, the stock price is P 25 per share. ABC thinks that the stock has potential and does not want to liquidate its position. ABC place a stop loss order with a price of P23.
1. what happen if the stock price drops to P23? Will it execute or not? and why? pls explain further.
*What happens when the value or amount of stop loss order has a same with the amount of stock price when it drops?
2. is ABC gain or lose? and why? Pls show solution and formula.
3.what will happen if the stock price will continue to increase? Will it execute or not? and why? pls explain further
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