Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

With a stop-limit order, once the stop price is touched in the market, the stop-limit order becomes a limit order to buy or to sell

With a stop-limit order, once the stop price is touched in the market, the stop-limit order becomes a limit order to buy or to sell at the limit price. Which of the following are true?

Multiple Choice

  • In addition, your broker-dealer may not allow you to place a stop limit order on some securities or accept a stop limit order for OTC stocks.

  • A stop-limit order may never get filled if the stock's price never reaches the specified limit price. This may happen especially in fast-moving markets where prices fluctuate wildly.

  • The use of stop limit orders is much more frequent for stocks that trade on an exchange than in the over-the-counter (OTC) market.

  • The benefit of a stop-limit order is that the investor can control the price at which the trade will get executed.

  • All of the options.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions