Sam Placed a Limit Order to Sell 500 Shares of Stock

question 93

Multiple Choice

Sam placed a limit order to sell 500 shares of stock at $14 a share. Which of the following does Sam know for sure?
I. His order will execute but the time of execution is unknown.
II. His order may never execute.
III. He will receive exactly $7,000 if his order executes.
IV. He could receive more, but not less, than $14 a share.

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

Comprehend the role and effects of government spending and taxation in fiscal policy.

Recognize the historical context and evolution of fiscal policy and national debt.

Analyze the relationship between fiscal policy, interest rates, and the federal budget deficit.

Identify the conditions under which budget deficits are deemed appropriate.

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Definitions:

Future Value Factor

A factor used in time value of money calculations that determines the future value of a present sum of money or a series of payments, accounting for compounding interest.

Reciprocals

The mathematical result of dividing 1 by a given number; a reciprocal of a fraction is its inverse.

Present Value

The current valuation of money to be received in the future or ongoing cash flows, based on a predetermined return rate.

Future Value

The value of an investment or sum at a specific future date, accounting for factors like interest rates or dividends.