If you place a stop-loss order to sell at $23 on a stock currently selling for $26.50 per share, what is likely to be the minimum loss you will experience on 50 shares if the stock price rapidly declines to $20.50 per share? Explain. What if you had placed a stop-limit order to sell at $23, and the stock price tumbled to $20.50?
Answer to relevant QuestionsYou have been researching a stock that you like, which is currently trading at $50 per share. You would like to buy the stock if it were a little less expensive—say, $47 per share. You believe that the stock price will go ...Briefly describe standard deviation as a measure of risk or variability. Define yield (internal rate of return). When is it appropriate to use yield rather than the HPR to measure the return on an investment? You invest $7,000 in stock and receive $65, $70, $70, and $65 in dividends over the following 4 years. At the end of the 4 years, you sell the stock for $7,900. What was the yield on this investment? A company reported net income in 2009 of $350 million. In 2013 the company expects net income to be $441.7 million. Estimate the annual compound growth rate of net income.
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