An Analyst Has a Limit Order Outstanding on a Stock

question 116

Multiple Choice

An analyst has a limit order outstanding on a stock. He argues that the probability that the order will execute before the close of trading is 0.20. Thus, the odds for the order executing before the close of trading are

• A) one in four.
• B) one in five.
• C) four to one.
• D) five to one.

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Definitions:

AGI

Adjusted Gross Income is the total income minus specific deductions, used to determine taxable income on an individual's tax return.

Contributed

The act of giving or donating something, often for a cause or in context of capital given to a business or investment.

Foreign Tax Credit

An irreversible tax credit for income taxes remitted to a foreign country because of withholdings on foreign income tax.

Taxable Income

Income that is subject to taxation, after all allowed deductions and exemptions are subtracted from gross income.