Please answer the following questions: Describe the differences among the following three types of orders: market, limit,...

50.1K

Verified Solution

Question

Finance

Please answer the following questions:

  1. Describe the differences among the following three types oforders: market, limit, and stop loss.
  2. What is a short sale?
  3. Describe buying on margin.
  4. Why is it illegal to trade on insider information?

Answer & Explanation Solved by verified expert
3.6 Ratings (413 Votes)
A market order does not specify the price of the order It will execute the order at the best price available at the time of placing the order A market order ensures guarantee of execution but uncertainty of price A limit order specifies the price at which the order should be executed The order will be executed only if the specified price is available A limit order ensures certainty of price but no guarantee of execution A stop loss order specifies a trigger price at which    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students