I have a couple questions about orders (Buy stop, sell stop, buy limit, and sell limit), if you also be able to explain
customer is long a stock with a large gain and is concerned the market may go down. As the RR, which would you recommened?
My answer is buy limit
customer has beeen following a stock that has been moving sideways and would like to take advantage if the stock should break through resistance. which would you recommend?
my answer is sell limit
customer has buy limit of $49.5 when cmv is $5. the BOD of company declares and pay $1 dividend. which orders would be a specialist adjust for dividend?
I’ll do my best to add some clarity, but without additional information about these questions, I’m limited in how much I can help. If you have questions about Achievable quizzes, can you please use the feedback icon in the top right corner of the screen? This gives us information about the specific question you’re looking at.
A buy limit order would allow them to set an order that lets them buy if the price drops. If they want to increase their position, this could be an answer. However, if the customer wants to limit their loss, a sell stop order, which allows them to sell after losing a certain amount, would be more appropriate.
Breaking through resistance means the stock value is going up. A sell limit order could be appropriate if the customer holds the stock and wants to sell at a certain point.
Yes, buy limit and sell stop orders are adjusted by default.
I’d recommend you review these chapters in our textbook:
in the top right corner of the screen? This gives us information about the specific question you’re looking at.