Mark Just Placed a Stop Limit Order to Sell 100

question 67

Multiple Choice

Mark just placed a stop limit order to sell 100 shares at $21 stop, $18 limit. Which one of the following statements is correct concerning this order if the current market price is $16?

• A)As soon as the price rises to $18, the stock will be sold.
• B)The stock will sell for at least $18 but less than $21.
• C)The stock will sell for $18 a share as soon as the price hits $21.
• D)The order will become a limit order to sell at $21 once the market price reaches $18.
• E)The order will become a limit order to sell at $18 once the market price reaches $21.

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Definitions:

Consumption

The total value of goods and services consumed by households and government within a country.

Disposable Income

The budget left for household savings and spending after the deduction of income taxes.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing basic necessities that individuals will purchase regardless of their income.

APC

It is defined as the proportion of income that goes into consumption expenses, termed as the Average Propensity to Consume.