Marcus Just Placed a Stop Limit Order to Sell 100

question 31

Multiple Choice

Marcus 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:

Exchange

The promise of rewards to persuade another person to cooperate.

Coalition Building

Gathering the support of others as a reason for another person to agree to a request.

Assertiveness

The use of demands or threats to persuade someone to carry out a task.

Referent Power

A form of influence derived from the admiration one has for an individual, leading to a desire to emulate or gain approval from that person.