Description
13. (LO 11.7) Describe the differences among the following three types of orders: market, limit, and stop loss.
14. (LO 11.7) What is a short sale?
15. (LO 11.7) Describe buying on margin.
25. (LO 11.11) Why is it illegal to trade on insider information?
Explanation & Answer
Attached.
Running head: PRINCIPLES OF FINANCE
Principles of Finance
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PRINCIPLES OF FINANCE
Principles of Finance
RQ13
Market orders cannot be acknowledged outside of market hours or when the exchange of
a specific stock is ended or put on suspension. A market order is a purchase or sells request to
take effect instantly at the present market costs. Limit orders enable an individual to lay down
the maximum price tag for their purchase requests, or a minimum price to sell their orders. A
stop-loss order is a request made with a broker to trade security when it achieves a specific cost
h...
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