1: A) After 1 month B) after 5 months C) at no point in the period D)after 4 months E) after 2 months F) after 3 months G) when the market opened

2: A) no point in this period B) exactly $88 C) the best available price

3: A) act as a safeguard but have no real effect B) prevent hi from earning large gains C) limit his losses

( ANSWERS FOR BOTH GRAPHS)

. Understanding limit and stop orders Inderstanding How Trade Orders Work ifferent trade orders such as market orders, limit orders, and stop-loss orders are created to give investors the liberty to manage their securities ased on their expectations out of the investments. ack purchased 150 shares of an exchange traded fund (ETF) specializing in energy for $90.24 per share. Jack is comfortable holding on to his shares n the face of minor fluctuations, but does not want to risk the share value falling far below his purchase price. He therefore considers placing a order so that all 150 shares would be sold if the share price falls to $88. ig graphs depict two hypothetical paths for the share value of Jack's ETF over the course of the next six months. Complete the sentences graph to describe what would happen if Jack placed the preceding order under each of the two circumstances. In the preceding scenario, his order would be activated and executed at ; thus the order would over the six month period. In the preceding scenario, his order would be activated and executed at ; thus the order would over the six month period. True or False: If instead the stock price had dipped below $88 and then risen for the rest of the 6 month period, ending up at a price of $98, placing the order would have acted as a safeguard but would have had no real effect. True False . Understanding limit and stop orders Inderstanding How Trade Orders Work ifferent trade orders such as market orders, limit orders, and stop-loss orders are created to give investors the liberty to manage their securities ased on their expectations out of the investments. ack purchased 150 shares of an exchange traded fund (ETF) specializing in energy for $90.24 per share. Jack is comfortable holding on to his shares n the face of minor fluctuations, but does not want to risk the share value falling far below his purchase price. He therefore considers placing a order so that all 150 shares would be sold if the share price falls to $88. ig graphs depict two hypothetical paths for the share value of Jack's ETF over the course of the next six months. Complete the sentences graph to describe what would happen if Jack placed the preceding order under each of the two circumstances. In the preceding scenario, his order would be activated and executed at ; thus the order would over the six month period. In the preceding scenario, his order would be activated and executed at ; thus the order would over the six month period. True or False: If instead the stock price had dipped below $88 and then risen for the rest of the 6 month period, ending up at a price of $98, placing the order would have acted as a safeguard but would have had no real effect. True False