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Rosa is an experienced investor who enjoys researching and investing in individual stocks that appear promising. On August 12 she is reviewing the trading information
Rosa is an experienced investor who enjoys researching and investing in individual stocks that appear promising. On August 12 she is reviewing the trading information for a new home security system company Secure You, presented in the following table. Stock Information for Secure You Trade Time: 2:32 PM EDT Last Trade: 271.96 Open: 265.45 Prev Close: 264.00 Day's Range: 261.46-275.53 Change: +7.96 (0.03) She would like to buy 100 shares of stock at some point during the day if the price falls to $268.58, therefore she places a order at 2:32 PM EDT. When she places a day order, if the price does not reach $268.58 by the end of the day, her order will be Her broker is able to execute the trade two hours later, obtaining her 100 shares at $268.58 each. Suppose the price of the stock falls for the rest of the day, eventually closing at a price of $267.46. In this case, the total value of the shares she purchased between the time of her purchase and the end of the day. If she had instead placed a order at 2:32 PM and obtained the same number of shares at $272.16 per share, she would have by the end of the day instead. Nick is another investor who currently owns shares of Secure you stock. He would like to place a particular kind of limit order, in which the order is canceled if it cannot be executed immediately at the specified price or better. This type of order is known as
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