If an Investor Is Attempting to Buy a Stock That

question 30

Multiple Choice

If an investor is attempting to buy a stock that is very volatile,it would be best to use a:

• A)market order
• B)limit order
• C)stop-loss order
• D)contingency order

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Definitions:

Average Costs

This reflects the cost for each unit, calculated by dividing the overall cost of production by the total units created.

Shutting-Down

The process a business undertakes to cease operations, often due to financial problems or a strategic decision.

Short Run

A period in which at least one factor of production is fixed, limiting the ability of a business to adjust fully to changes in market conditions.

Average Variable Costs

Costs that vary with the level of output, calculated by dividing the total variable costs by the quantity of output produced.