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You own 500 shares of UD Inc., stock. It is currently priced at $50. You cannot sell the shares now. To protect yourself against a
You own 500 shares of UD Inc., stock. It is currently priced at $50. You cannot sell the shares now. To protect yourself against a rapid drop in the price, you place a stop-limit order to sell 500 shares at $40.
It turns out the earnings report was not so good, and the stock price fell to $30 right after the announcement. It did, however, bounce back, and by the end of the day it was back to $42.
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Explain the changes in your account.
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