If an Individual Investor Places a Limit Order at $38

question 290

True/False

If an individual investor places a limit order at $38 and the stock currently sells for $41 per share, the broker will buy the stock for the investor.

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Definitions:

Projected Increase

An estimate or forecast of the amount by which a specific metric, such as revenue or population, is expected to grow over a certain period of time.

Required Return

The minimum rate of return an investor expects or requires from an investment to compensate for its level of risk.

Expected Dividend Yield

A forecasted annual percentage of return that comes from dividends paid by the stock, calculated by dividing the anticipated annual dividend by the current stock price.

Expected Growth Rate

The rate at which a company, investment, or economy is anticipated to grow over a specified period.