Investors can leverage their stock transactions with the use of
A) Margin orders
B) Stop loss orders
C) Limit orders
D) Market orders
E) Specialists

Question

Quizplus · Accepted Answer

Margin orders allow investors to borrow funds from a brokerage firm to purchase additional shares of a stock, which increases their leverage in the transaction. Stop loss orders set a predetermined price at which the investor will automatically sell their shares to limit losses, but this does not increase leverage. Limit orders allow investors to set a maximum or minimum price at which they are willing to buy or sell a stock, but this also does not increase leverage. Market orders simply instruct the brokerage firm to execute a transaction at the current market price, without any leverage involved. Specialists are individuals who facilitate trading in a particular stock, but they do not directly provide leverage to investors.

Investors Can Leverage Their Stock Transactions with the Use of