Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The questions are in order Understanding How Trade Orders Work Different trade orders such as market orders, limit orders, and stop-loss orders are created to

The questions are in order
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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, Carl purchased 200 shares of an exchange traded fund (ETF) specializing in the health care sector for $90.24 per share. Cat is comfortable holding on to his shares in the face of minor fluctuations, but does not want to risk the share value falling for 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 Cart's ETF over the course of the next six months. Complete the sentences below each graph to describe what would happen af Cari placed the preceding order under each of the two circumstances 100 SHARE VALUE ? 100 & 92 SHARE VALUE 34 00 5 MONTHS IN FUTURE In the preceding scenario, his order would be activated order would and executed at over the six month period. thus the 2 100 06 92 SHARE VALUE 50 14 30 0 0 2 3 MONTHS IN FUTURE In the preceding scenario, his order would be activated order would and executed over the six month period. ; thus the In the preceding scenario, his order would be activated order would and executed at over the six month period. > thus the 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Military Finances Personal Money Management For Service Members Veterans And Their Families

Authors: Cheryl Lawhorne-Scott, Don Philpott

1st Edition

144222214X, 978-1442222144

More Books

Students also viewed these Finance questions