Which of the Following Orders Is Most Useful to Short

question 34

Multiple Choice

Which of the following orders is most useful to short sellers who want to limit their potential losses?

• A) Limit order
• B) Discretionary order
• C) Limit-loss order
• D) Stop-buy order
• E) None of these

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Definitions:

Term Deposit

A financial vehicle offered by banks that locks funds for a certain period, earning a specified interest rate.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount that remains unpaid.

Honda Canada Finance

The financial service arm of Honda in Canada, offering financing options for purchasing Honda vehicles, including loans and leases.