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. Carlos purchased 300 shares of an exchange traded fund (ETF) specializing in energy for $90,24 per share. Carlos is comfortable holding on to his shares in the face of minor Muctuations, but does not want to risk the share value falling for below his purchase price. He therefore considers placing a stop 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 Carlos's ETF over the course of the next six months. Complete the sentences below each graph to describe what would happen if Carlos placed the preceding order under each of the two circumstances, ? 100 96 92 SHARE VALUE 88 84 80 Of 5 6 2 3 4 MONTHS IN FUTURE In the preceding scenario, his order would be activated order would Nimit his losses and executed at over the six month period ; thus the ? 100 22 SHARE VALUE 38 54 10 2 TUG IN CUITUDE 10 0 1 2 MONTHS IN FUTURE thus the In the preceding scenario, his order would be activated order would and executed at over the six month period. True or False: Ir 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 Falso