Running head: QUESTIONS1Review QuestionsStudents NameInstitutional AffiliationQUESTIONS2Review Questions13. (LO 11.7) Describe the differences among the following three types of orders: market,limit, and stop loss.Market order is an order for immediate sale or purchase security. It guarantees executionof the order but not the price. It is usually done at the current bid or ask price.Limit order is an order to buy or sell security at a particular price or better. Unlike themarket order which, limit order prioritizes the price and therefore does not guaranteeexecution.Stop-loss order is an order to sell or buy a stock should a particular price, the stop price,be reached. The stop-loss order also called stop becomes stop order when the stop price isreached (Investor.gov, n.d.).14. (LO 11.7) What is a short sale?A short sale refers to sale of securities not owned by the trader or that the trader willborrow for delivery. The expectation is that stock price will fall. It helps investors hedgeagainst price volatility in their securities. Should the price drop, the short seller buys thestock at a lower price thereby making a price. If i ...
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