Question

ABC Technologies, a very volatile stock, closes at $180 per share. Your customer has placed an order to sell 500 ABC at 165 stop limit 160 GTC. After the close, the company announces bad earnings and the stock opens at 145. What happened to your customer's order?

Select one:

a. None of the below.

b. It has been canceled because the stock price is below the stop price.

c. it has been canceled because the stock price is below the limit price.

d. It has been elected and has become a limit order.

Answer 1

Good till cancelled order will be elected and they will be becoming a normal limit order because they have been selected .

Good till cancelled order will be not adjusting with the announcement of the dividend because when the dividend will be announced these good till cancelled order will still hold their original value and hence they will get executed and they will become a limit order

Correct answer is option (D) it has been elected and become a limit order