Unlike Day Orders, a Good-Til-Cancelled (GTC) Order Is an Order

question 88

Multiple Choice

Unlike day orders, a good-til-cancelled (GTC) order is an order to buy or sell a security at a specific or limit price that lasts until the order is completed or cancelled. Which of the following are true?

• A)A GTC order will not be executed until the limit price has been reached, regardless of how many days or weeks it might take.
• B)Investors often use GTC orders to set a limit price that is far away from the current market price.
• C)Some brokerage firms may limit the time a GTC order can remain in effect and may charge more for executing this type of order.
• D)All of the above are true

Understand the pros and cons of using project financing for capital investments.

Identify and describe major stock exchanges and indices in Canada.

Comprehend the rationale behind IPO underpricing and seasoned equity offerings.

Understand the concept of equity carve-outs and their relation to initial public offerings.

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Definitions:

Target Capital Structure

The optimal mix of debt, equity, and other securities that a firm aims to hold, which minimizes its cost of capital and maximizes its stock price.

Capital Budget

Planning for the acquisition and use of long-term assets to achieve a company’s strategic goals.

Payout Ratio

A financial metric indicating the percentage of a company's earnings paid out as dividends to shareholders, typically expressed as a percentage of net income.

Residual Dividend Policy

A strategy in which a company pays dividends to its shareholders from the residual or leftover equity once all project and operation costs have been met.