Explain the Use of Limit Orders and Stop- Loss Orders

question 57

Essay

Explain the use of limit orders and stop- loss orders in rebalancing an investor's share portfolio. What are the principal risks in using these orders?

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Definitions:

Objectivity

The practice of maintaining impartiality and neutrality, avoiding bias or subjective influence in judgments or actions.

Empirical Method

Gaining knowledge through the observation of events, the collection of data, and logical reasoning.

Objectivity

The quality of being impartial or neutral, free from personal bias or emotions, particularly in the analysis or presentation of data.

Science

The use of systematic methods to observe the natural world, including human behavior, and to draw conclusions.