You Purchased XYZ Stock at $50 Per Share

question 42

Multiple Choice

You purchased XYZ stock at $50 per share. The stock is currently selling at $65. Your gains could be protected by placing a ________.

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

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Definitions:

Verifiable

Capable of being tested and proven as true or accurate.

Inductive Logic

A method of reasoning in which general principles are derived from specific observations, moving from particular instances to broader generalizations.

Deductive Logic

A method of reasoning from one or more general statements (premises) to reach a logically certain conclusion, applying general principles to specific cases.

Hypothesis Testing

A statistical method that uses sample data to evaluate a hypothesis about a population parameter.