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you purchase a company stock at $25 per share. the stock is currently trading at $35 per share. you think that the price may rise
you purchase a company stock at $25 per share. the stock is currently trading at $35 per share. you think that the price may rise to $38 per share at which point you would sell. you are also concerned about a market crash. if the market begins to tank, you will be willing to sell at $31 per share. to achieve this, you will place a limit order to sell at $38 and a stop-loss order (sell stop) to sell at $31. which of the following risk do you face?
a) the price may never rise to $38 and you dont get the price you want
b) the price falls below $31, but your trade is not executed
c) the price falls below $31, but you end up selling at a lower price than $31
d) a and b are true
e) a and c are true
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