LOS j: Discuss the major types of traders, based on their motivation to trade, time versus price preferences, and preferred order types.
Q1. Passive traders emphasize:
A) time in their trading and use market orders.
B) price in their trading and use limit orders.
C) price in their trading and use market orders.
Q2. Information-motivated traders emphasize:
A) time in their trading and use market orders.
B) price in their trading and use limit orders.
C) price in their trading and use market orders.
Q3. Value-motivated traders emphasize:
A) price in their trading and use limit orders.
B) time in their trading and use limit orders.
C) price in their trading and use market orders.
Q4. Jack Steele has just determined using analysis that the prospects for Titan Steel are favorable. He would like to trade before other investors realize Titan’s prospects. What type of trade should he use?
A) limit.
B) participate.
C) market. |