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Which of the Below Statements Is TRUE

Question 11

Multiple Choice

Which of the below statements is TRUE?


A) Stock prices often exhibit abrupt price changes, so the direction of a change in a stock price may be quite permanent, resulting in the premature trading of a stock.
B) A stop-limit order, a hybrid of a stop order and a limit order, is a stop order that designates a price limit.
C) The stop-limit order cannot be used to cushion the market impact of a stop order.
D) We can think of the stop order as an order designed to get out of an existing position at an acceptable price (by specifying the exact price) , and the market if touched order as an order designed to get into a position at an acceptable price (also by specifying the exact price) .

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