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Summary cf week 7 investments template.docx FIN100 Week 7 Homework: Definitions FIN100: Principles of Finance Week 7 Homework Instructions: Please respond to the following questions: 1. Describe the differences among the following three types of orde$7.49
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Summary cf week 7 investments template.docx FIN100 Week 7 Homework: Definitions FIN100: Principles of Finance Week 7 Homework Instructions: Please respond to the following questions: 1. Describe the differences among the following three types of orde
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cf week 7 investments FIN100 Week 7 Homework: Definitions FIN100: Principles of Finance Week 7 Homework Instructions: Please respond to the following questions: 1. Describe the differences among the following three types of orders: market, limit, and stop loss. Provide examples of eac...
cf week 7 investments templatedocx fin100 week 7 homework definitions fin100 principles of finance week 7 homework instructions please respond to the following questions 1 describe
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FIN100
Week 7 Homework: Definitions
FIN100: Principles of Finance
Week 7 Homework
Instructions: Please respond to the following questions:
1. Describe the differences among the following three types of orders: market, limit, and
stop loss. Provide examples of each in your own words.
Your Answer: An order for immediate purchase or sale at the best possible price is called
a market order.1 In a limit order, the maximum buying price, or limit buy, or the minimum
selling price, or limit sell, is specified by the investor. And, A stop-loss order is an order
to sell stock at the market price when the price of the stock falls to a specified level.
[ CITATION Str \l 1033 ]
2. What is a short sale? Provide an example in your own words.
Your Answer: Short sale occurs when the sale of securities in which the seller does not
own.[ CITATION Str \l 1033 ]
Example: A broker borrows 2,000 shares of a company at 50 a share expecting the stock
to decline to 40 a share and buys the 2,000 shares at the lower $40 and profits the $10 a
share times 2000 equaling $20,000 profit
3. Describe buying on margin. Provide an example in your own words.
Your Answer: Investors borrow money from a lender and invest it as well as with their
own money in securities or stocks.[ CITATION Str \l 1033 ]
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