Which of the Below Statements Is TRUE

question 11

Multiple Choice

Which of the below statements is TRUE?

• A) Stock prices often exhibit abrupt price changes, so the direction of a change in a stock price may be quite permanent, resulting in the premature trading of a stock.
• B) A stop-limit order, a hybrid of a stop order and a limit order, is a stop order that designates a price limit.
• C) The stop-limit order cannot be used to cushion the market impact of a stop order.
• D) We can think of the stop order as an order designed to get out of an existing position at an acceptable price (by specifying the exact price), and the market if touched order as an order designed to get into a position at an acceptable price (also by specifying the exact price).

---

Definitions:

All-Terrain Vehicle

A motorized off-road vehicle designed to travel on four tires and handle a wide variety of terrain.

Off-Road Inc.

A fictional name that suggests a company specializing in products or services related to off-road activities or vehicles.

Design Defect

A flaw or error in the planning or engineering of a product that makes it unsafe or fails to perform its intended purpose.

Alternative Design's Effect

Refers to the impact that choosing a different design might have on the results or outcomes of a project or product.