Question

Suppose Apple Inc. is trading at $45 per shares. You want to purchase some shares after...

Suppose Apple Inc. is trading at $45 per shares. You want to purchase some shares after price decreases by $13 per share. Which of the following order would you place?

Stop buy order at $58

Stop loss order at $32

Limit sell order at $58

Limit buy order at $32
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Homework Answers

Answer #1

Current Price = $45

Wheres you want to purchase after price decreases by $13 per share.

Which is $45 - $13 = $32

It is a Limit Buy order, a limit order is one where one wants to buy or sell stock at certaing price, In such case buying your order will only get executed below or at the price specified.

It is not a stop order, thus making option A and B incorrect. Also its an order to buy not to sell thus option C is also incorrect.

The correct answer is option D i.e. Limit buy order at $32

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