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Summary cf week 7 investments template 2 .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 $7.49   Add to cart

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Summary cf week 7 investments template 2 .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

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cf week 7 investments template 2 .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 orders: market, limit, and stop loss. Pro...

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  • July 3, 2021
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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: The difference between the three types is as follows, Market type is

basically I want to buy/sale right now. I do not care about the price , I am ready to

purchase immediately. For example, I am at the car lot. Price is not a factor. I have the

perfect color, the inside is customized to my liking, everything is perfect down to the

rims! The car comes out to 40,000. This did not make me flinch. I am ready to close out

on this car right now, I do not care of the price. Limit order means though I want to buy

this I will only buy if it is the exact price I have set in my head, if it is over this price I

will not order. If it is below my set price I will still purchase. For example, I found this

hand bag while shopping online but, it is extremely expensive. I do not want to buy it

until the item goes on sale, once the item is on sale I will now add this item to my cart

and cash out on my purchase. Lastly, Stop Loss is basically saying the stock won't get

too much better, I need to find a point to pull out so that I wont lose my investment, at

this point I want to Stop! For example, I invested stock into myspace. My space reached

its peak, and is beginning to fall due to all of the new social media sites. Once the stock

has lowered to 3k I would like for my order to be executed and sell !

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