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Understanding How Trade Orders Work Dilferenk trade orders such as market orders, limit orders, and stop-loss orders are treated to give investors the liberty to

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Understanding How Trade Orders Work Dilferenk trade orders such as market orders, limit orders, and stop-loss orders are treated to give investors the liberty to manage their securities basod on their expectations out of the investments. Carl purchased 200 shares of an exchange traded fund (ETF) specializing in the health care sectoe for $90.24 per share. Carl is comfortable holding on to his shares in the face of minor fluctuatoris, but does not wank to risk the share value faling far below his purchase price. He therefore canisiders piacing a order so that all 200 shares would be sold if the share price falls to $88. The follon soepict two hypothetical paths for the share value of Caris ETF over the course of the next six months. Complete the sentences below ea idescribe what would happen if Carl placed the peececing order under each of the two circumstances. In the preceding scenario, his order would be activated and executed at thus the In the prececing scenario, his order would be activated and excculed at thus than order yould over the six month period. True or False: If Instead the stock price had eisen steadif and never fallen below to8, placing the order would have acted as a safeguard buf would hive had no real erfect. True Faise

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