Ryan Bought a Stock Three Years Ago for $6 a Share

question 60

Multiple Choice

Ryan bought a stock three years ago for $6 a share. Today, June 22, the stock is selling for $72 a share. Ryan is afraid that the price will fall and does not want to lose his profits so he places a stop- loss order to sell at $70. The stock sells between $71 and $75 throughout the remainder of the day on June 22. On the morning of June 23, the stock opens at $9 a share based on rumors of a possible bankruptcy due to inappropriate accounting procedures. Which one of the following statements is true concerning this situation?

• A) Ryan still owns his shares of stock since his order was never executed at the $70 price.
• B) Ryan's stock was sold for $9 a share causing him to lose most of his profits.
• C) Ryan received a call from the specialist asking him what he wanted to do about his order.
• D) Ryan was able to sell his stock for $70 a share thereby protecting his profits.

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Definitions:

Positive Outlook

An attitude or mindset that focuses on the positive aspects of situations, expecting good outcomes.

Professionalism

The conduct, aims, or qualities that characterize or mark a profession or professional person.

Team Player

An individual who works well within a group, contributing to the team's goals and effectively collaborating with other members.

Actively Listening

The practice of paying full attention to a speaker, understanding their message, and responding thoughtfully.