Ch 11: Assignment-Investment Planning tu TeaLI OLe 7. Understanding limit and stop orders Understanding How Trade Orders Work Different trade orders such as market order, limit order, stop-loss order etc. are created to give investors the liberty to manage their securities based on their expectations out of the investments Hubert purchased 100 shares of an exchange traded fund (ETF) specializing in energy for $48.87 per share Hubert 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 order so be sold if the share price falls to $44.00. that all 100 shares would The following graphs depict two hypothetical paths for the share value of Hubert's ETF over the course of the next six months. Complete the sentences below each graph to describe what would happen if Hubert placed the preceding order under each of the two circumstances. SHARE VALUE SHARE VALU 50 50 48 48 L4 42 40 MONTHS IN FUTUR Ch 11: Assignment-Investment Planning 48 48 46 44 e 42 42 40 40 MONTHS IN FUTURE MONTHS IN FUTURE In the preceding scenario, his order would be activated In the preceding scenario, his order would be activated and executed at and executed at ; thus the order would ; thus the order would over the over the six month period six month period True or False: If instead the stock price had dipped below $4400 and then risen for the rest of the 6 month periad ending up at a price of $59.43, placing the order would have acted as a safeguard but would have had no real effect O True O False