Which of the Following Is the Most Important Purpose of Issuing

question 86

Multiple Choice

Which of the following is the most important purpose of issuing a stop order?

• A) restricting the possible losses an investor is likely to incur
• B) buying a stock if its price reaches a certain level
• C) buying stock even without having adequate capital
• D) buying a stock if its price falls below a certain level
• E) minimizing the brokerage fee on a particular transaction

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Definitions:

Roots

The part of a plant that typically lies below the surface of the soil, responsible for anchoring the plant and absorbing water and nutrients.

Leaves

The flat, green structures of plants that are primarily responsible for photosynthesis, the process by which light energy is converted to chemical energy.

Stem

Usually the upright, vertical portion of a plant that transports substances to and from the leaves.

Flower

The reproductive structure of flowering plants, typically consisting of petals, sepals, stamens, and carpels.