Which of the Following Are Characteristics of Stop-Loss Orders

question 108

Multiple Choice

Which of the following are characteristics of stop-loss orders?
I. the risk of whipsawing
II. the ability to limit downside losses
III. the guaranteed execution within the order period
IV. the conversion to a market order

• A) I and II only
• B) III and IV only
• C) I, II and IV only
• D) II, III and IV only

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Definitions:

Alternative Dispute Resolution

A method for settling disputes outside of the courtroom, such as through arbitration or mediation.

Mediation

A method of settling disputes outside of court by using the services of a neutral third party, called a mediator. The mediator acts as a communicating agent between the parties and suggests ways in which the parties can resolve their dispute.

International Business Transactions

Economic activities that involve the exchange of goods, services, or information across national borders.

Arbitration Clauses

Provisions in a contract that require disputes to be resolved through arbitration, instead of through court litigation.