A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order. Once the stop price is touched in the market, the stop-limit order becomes a limit order to buy or to sell at the limit price. Which of the following are true?
A) The benefit of a stop-limit order is that the investor can control the price at which the trade will get executed.
B) A stop-limit order may never get filled if the stock's price never reaches the specified limit price. This may happen especially in fast-moving markets where prices fluctuate wildly.
C) The use of stop limit orders is much more frequent for stocks that trade on an exchange than in the over-counter (OTC) market.
D) In addition, your broker-dealer may not allow you to place a stop limit order on some securities or accept a stop limit order for OTC stocks.
E) All of the above are true
Correct Answer:
Verified
Q12: In a dealer market,the broker takes the
Q18: The turnover ratio percentages for 36 equity
Q20: A measure of liquidity for a stock
Q21: The more concentrated a national stock market
Q22: As a measure of "liquidity",
A)generally, the lower
Q24: A limit order
A)is an instruction from a
Q25: An all-or-none order is a limit order
Q26: The smaller the concentration percentage,
A)the more concentrated
Q27: Over the last few years, turnover ratios
Q32: Generally,the lower the turnover ratio,
A)the less liquid
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents