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first graph: blank 1 (at no point in this period/at no point in this period/after 1 month/after 2 months/after 3 months/after 4 months/after 5 months)

image text in transcribed

image text in transcribed

first graph:

blank 1 (at no point in this period/at no point in this period/after 1 month/after 2 months/after 3 months/after 4 months/after 5 months)

blank 2 (exactly $88/the best available price/at no point in this period)

blank 3 (prevent him from earning large gains/ act as a safeguard but have no real effect/ limit his losses)

second graph:

blank 1 (at no point in this period/at no point in this period/after 1 month/after 2 months/after 3 months/after 4 months/after 5 months)

blank 2 (exactly $88/the best available price/at no point in this period)

blank 3 (prevent him from earning large gains/ act as a safeguard but have no real effect/ limit his losses)

Understanding How Trade Orders Work 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. Hubert purchased 100 shares of an exchange traded fund (ETF) specializing in the health care sector for $90.24 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 that all 100 shares would be sold if the share price falls to $88. The following graph o hypothetical paths for the share value of Hubert's ETF over the course of the next six months. Complete the sentences below each graph ti what would happen if Hubert 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 dipped below $88 and then risen for the rest of the 6 month period, ending up at a price of $98, placing the order would have acted as a safeguard but would have had no real effect. True False Understanding How Trade Orders Work 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. Hubert purchased 100 shares of an exchange traded fund (ETF) specializing in the health care sector for $90.24 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 that all 100 shares would be sold if the share price falls to $88. The following graph o hypothetical paths for the share value of Hubert's ETF over the course of the next six months. Complete the sentences below each graph ti what would happen if Hubert 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 dipped below $88 and then risen for the rest of the 6 month period, ending up at a price of $98, placing the order would have acted as a safeguard but would have had no real effect. True False

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