Reading 55: Market Organization and Structure-LOS g 习题精选 2011, execution, clearing, contrast

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Session 13: Market Organization, Market Indices, and Market Efficiency
Reading 55: Market Organization and Structure

LOS g: Compare and contrast execution, validity, and clearing instructions.

 

 

Stop loss sell orders are:

A) placed to protect a short position.

B) executed on an uptick only.

C) placed to protect the gains on a long position.

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Stop loss sell orders are limit sell orders that are placed below market price. When the share price drops to the designated price, a sell order is executed protecting the investor from further declines.

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An investor sold a stock short and is worried about rising prices. To protect himself from rising prices he would place a:

A) limit order to buy.

B) stop order to sell.

C) stop order to buy.

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A limit order to buy is placed below the current market price.

A limit order to sell is placed above the current market price.

A stop (loss) order to buy is placed above the current market price.

A stop (loss) order to sell is placed below the current market price.

A stop order becomes a market order if the price is hit.

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An order placed to protect a short position is called a:

A) stop loss buy.

B) stop loss sell.

C) protective call.

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A short position profits from declines in stock price and experiences losses as the price rises. A stop loss buy is a limit order that is placed above the market price. When the stock price reaches the stop price, the limit order is executed curtailing further loses.