Which One of the Following Market Tools Is Used to Limit

question 61

Multiple Choice

Which one of the following market tools is used to limit downside risk in the price of a stock?

• A)Stop order
• B)Market order
• C)Limit order
• D)Deferred sales order

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Definitions:

Indirect Method

A cash flow statement approach that adjusts net income for non-cash transactions and changes in working capital.

Operating Activities

Transactions and events that pertain to the primary business operations, impacting the net income and involving cash flows related to operating expenses and revenues.

Indirect Method

A method for preparing cash flow statements where net income is adjusted for changes in balance sheet items to compute cash from operating activities.

Operating Activities

Transactions related to the primary operations of a business, such as sales revenue and expenses, that affect the cash flow.