Arianna just made another fantasticinvestment: She purchased 400 shares in Great Gains Corporation for $22.79 per share.
Question:
Arianna just made another fantasticinvestment: She purchased 400 shares in Great Gains Corporation for $22.79per share. Yesterday the stock closed at $68.15per share. In order to lock in hergains, she has decided to employ astop-loss order. Assuming she set the order at $67.46,what is likely tohappen? Why might this not be a wisedecision? At what price would you recommend setting thestop-loss order?Why?
In order to lock in hergains, she has decided to employ astop-loss order. Assuming she set the order at $67.46: (Select the best answerbelow.) A.It is likely that the position will be sold as the stock fluctuates around its closing price.B.It is unlikely that the position will be sold as the stock fluctuates around its closing price.C.There is not enough information to answer this.