If an investor places a market order, the stock will be sold if its price falls to the stipulated level. If an investor places a limit order, the stock will be bought if its price rises above the stipulated level.
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Q: If an investor places a _________ order, the stock will be sold if its price falls to the stipulated…
A: See below the definition
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If an investor places a market order, the stock will be sold if its price falls to the stipulated level. If an investor places a limit order, the stock will be bought if its price rises above the stipulated level.
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- If an investor places a _________ order, the stock will be sold if its price falls to the stipulated level. If an investor places a __________ order, the stock will be bought if its price rises above the stipulated level. Group of answer choices stop-loss; stop-buy market; limit stop-buy; stop-loss limit; marketWhich of the following is a reason why an investor would place a stop buy order on a stock? To ensure a short position is closed out for profit To ensure that the broker executes immediately at the current market price To ensure the stock is sold before its price falls to a specified level To ensure the stock is purchased when its price is risingThe buyer of a call option on stock benefits if the underlying stock price rises or if the volatility of the stock's price increases. Select one: True False
- what is the terminology for the lowest price listed on a stock market exchange at which an investor is willing sell a specific stock? A- market price B- buyer price C- Ask price D- bid priceIf you want to buy a particular stock but are worried thatdemand from investors could push the price to an unreasonably high level before yourorder is executed, what type of order would you specify? Why?If the value of a stock is less than the current market price, I should ________________ the stock since it is ________________ (under/over valued).
- If the fair value of a stock is more than its market value, which of the following is a reasonable conclusion? a. The stock has a low level of risk b. The stock offers a high dividend payout ratio c. The market is undervaluing the stock d. The market is overvaluing the stockExplain to your client how option contract can be used as protection against a fall in stock price.which of the following statements is true? Select one: Investors sell a stock when required return is less than expected return and buy a stock when required return above expected return None of the answers are correct Investors buy a stock when it is under-valued and sell it when it is over-valued Investors sell a stock when it is under-valued and buy it when it is over-valued.
- The short seller anticipates the stock price will __________, so that the share can be purchased later at a __________ price than it initially sold for. A. fall, higher B. fall, lower C. rise, higher D. rise, lowerWhich of the following statement(s) is(are) TRUE? (i) The valuation price of a stock primarily depends on expected future dividends to its shareholders and its required rate of return. (ii) An investor who intends to sell a stock after holding it for a short period will forgo all future dividends, thus will be willing to pay for a lower price for the stock compared to another investor who prefers to hold the share for a longer period. (iii) The valuation share price is positively related to the share's required rate of return.____________ is the most profitable transaction to undertake in a stock-index option, if the stock market is expected to fall substantially after the transaction is completed.