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 Carl purchased 200 shares of an exchange traded fund (ETF) specializing in the health care sector for $90 24 per share Carl 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 that all 200 shares would be sold if the share price falls to $88 The following graphs depict two hypothetical paths for the share value of Carls ETF over the course of the next six months Complete the sentences below each graph to describe what would happen if Carl placed the preceding order under each of the two circumstances In the preceding scenario, his order would be activated and executed at thus the order would over the six month period In the preceding scenario, his order would be activated and executed at thus the order would over the six month period True or False If instead the stock price had risen steadily and never fallen below $88, placing the order would have acted as a safeguard but would have had no real effect True False begin tabular c hline stop hline limit hline market hline end tabular after 3 months after 2 months at no point in this period after 1 month after 5 months when the market opened after 4 months the best available price no point in this period exactly $88 prevent him from earning large gains act as a safeguard but have no real effect limit his losses begin tabular c hline after 1 month hline at no point in this period hline after 4 months hline after 2 months hline after 5 months hline when the market opened hline after 3 months hline end tabular the best available price exactly $88 no point in this period limit his losses act as a safeguard but have no real effect prevent him from earning large gains

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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

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.

Carl purchased 200 shares of an exchange traded fund (ETF) specializing in the health care sector for $90.24 per share. Carl 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 image text in transcribed order so that all 200 shares would be sold if the share price falls to $88.

The following graphs depict two hypothetical paths for the share value of Carls ETF over the course of the next six months. Complete the sentences below each graph to describe what would happen if Carl placed the preceding order under each of the two circumstances.

image text in transcribed In the preceding scenario, his order would be activated

and executed at image text in transcribed ; thus the order would over the six month period.

image text in transcribed

In the preceding scenario, his order would be activated image text in transcribed and executed at

thus the order would image text in transcribed over the six month period.

True or False: If instead the stock price had risen steadily and never fallen below $88, placing the order would have acted as a safeguard but would have had no real effect.

True

False

\begin{tabular}{|c|} \hline stop \\ \hline limit \\ \hline market \\ \hline \end{tabular} after 3 months after 2 months at no point in this period after 1 month after 5 months when the market opened after 4 months the best available price no point in this period exactly $88 prevent him from earning large gains act as a safeguard but have no real effect limit his losses \begin{tabular}{|c|} \hline after 1 month \\ \hline at no point in this period \\ \hline after 4 months \\ \hline after 2 months \\ \hline after 5 months \\ \hline when the market opened \\ \hline after 3 months \\ \hline \end{tabular} the best available price exactly $88 no point in this period limit his losses act as a safeguard but have no real effect prevent him from earning large gains