DDrop down

1. Stop; limit; market

2. After 3 months; at no point in this period; after 4 months; after 1 month; after 5 months; when the market opened; after 2 months

3. no point in this period; exactly 488; the best avaliable price

4. limit his losses; prevent him from earning large gains; act as a safegaurd but have no real effect

5.After 3 months; at no point in this period; after 4 months; after 1 month; after 5 months; when the market opened; after 2 months

6.the best avalable price; exactly $88; no point in this period

7. limit his losses; prevent him from earning large gains; act as a safegaurd but have no real effect

Understanding How Trade Orders Work Different trade orders such as market orders, limit orders, and stop-loss orders are created to give investors the liberty to manage their securities based on their expectations out of the investments. Charles purchased 300 shares of an exchange traded fund (ETF) specializing in consumer staples for $90.24 per share. Charles is comfortable holding on to his shares in 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 300 shares would be sold if the share price falls to $88. The following graphs depict two hypothetical paths for the share value of Charles's ETF over the course of the next six months. Complete the sentences below each graph to describe what would happen if Charles placed the preceding order under each of the two circumstances. (? 100 96 92 SHARE VALUE and executed at ; thus the In the preceding scenario, his order would be activated order would over the six month period. ? 100 96 / SHARE VALUE 84 80 0 1 4 5 6 2 3 MONTHS IN FUTURE and executed at ; thus the In the preceding scenario, his order would be activated order would over the six month period. True or False: If instead the stock price had declined for the majority of the period and ended up at a price of $82, placing the order would have limited his losses. True False