Question: on your expectations regarding a specific transaction you have the option to select from three different order types: market order, limit order, or a stop
on your expectations regarding a specific transaction you have the option to select from three different order types: market order, limit order, or a stoploss order.
Frances is an experienced investor who enjoys researching and investing in individual stocks that appear promising. On August she is reviewing the trading information for a new smartphone company MobileRover, presented in the following table.
Stock Information for MobileRover
She would like to buy shares of stock at some point during the day if the price falls to $ therefore she places a order at : PM EDT. When she places a day order, if the price does not reach $ by the end of the day, her order will be Her broker is able to execute the trade two hours later, obtaining her shares at $ each.
Suppose the price of the stock falls for the rest of the day, eventually closing at a price of $ In this case, the total value of the shares she purchased between the time of her purchase and the end of the day. If she had instead placed a order at : PM and obtained the same number of shares at $ per share, she would have by the end of the day instead.
Dmitri is another Investor who currently owns shares of MobileRover stock. He would like to place a particular kind of limit order, in which the order remains in effect indefinitely, unless it is filled or canceled. This type of order is known as
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