A stop order is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price. When the specified price is reached, your stop order becomes a market order, The advantage of a stop order is that
A) you don't have to monitor how a stock is performing on a daily basis.
B) the stop price can be activated by a short-term fluctuation in a stock's price.
C) once your stop price is reached, your stop order becomes a market order and the price you receive may be much different from the stop price, especially in a fast-moving market where stock prices can change rapidly.
D) all of the above are advantages
Correct Answer:
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Q36: The secondary equity markets of the world
Q38: Price discovery in the secondary stock markets
A)occurs
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Q44: A specialist on the NYSE
A)is obliged to
Q45: The advantages of a market order include
Q46: A type of noncontinuous exchange trading system
Q47: A "call market"
A)is OTC and over-the-phone.
B)features an
Q49: A stop order is an order to
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