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Understanding How Trade Orders Work Different trade orders such as market orders, limit orders, and stop-loss orders are created to give invertors the liberty to

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Understanding How Trade Orders Work Different trade orders such as market orders, limit orders, and stop-loss orders are created to give invertors the liberty to manage their securities based on their expectations out of the investments. Charles purchased 300 shares of an exchange traded fund (ETF) specializing in consumer staples for $90.24 per share. Charles 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 300 shares would be sold if the share price falls to $88. The follov market s depict two hypothetical paths for the share value of Charles's ETF over the course of the next six months. Complete the sentence: limit ch graph to describe what would happen if Charles placed the preceding order under each of the two circumstances. Understanding How Trade Orders Work Different trade orders such as market orders, limit orders, and stop-loss orders-are created to glve investors the liberty to manage their securities based on their expectations out of the investments. Charles purchased 300 shares of an exchange traded fund (ETF) specializing in consumer staples for $90.24 per share. Charles is comfortabie hoiding 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 therafore considers placing a order so that all 300 shares would be sold if the share price falls to $88. The following graphs depict two hypothetical paths for the share value of Charles's EIF over the course of the next six months. Complete the sentences below each graph to describe what would happen if Charles placed the preceding order under eoch of the two circumstances. in the preceding scenario, his order would be activatei and executed at ; chus the d. In the precedina scenario, his order would be activated and executed at order would over the six month period. I the preceding scenario, his order would be activated and executed at ; thus the rder 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 Faise: If instead the stock price had declined for the majority of the period and ended up at a price of $82, placing the order would have limited his losses. True Faise 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 declined for the majority of the period and ended up at a price limited his losses. True False In the precedind scenario, his order would be activated and executed at thus the order would over the six month period. True or Fatsi re majority of the period and ended up at a price of $82, placing the order would have limited his ll True or False: If instead the stock price had declined for the majority of the period and ended up at a.price of s82, placing the order would have Iimited his lesses. True False

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