A Limit Move in the Futures Market Is

question 2

Multiple Choice

A limit move in the futures market is:

• A) a movement of the futures price in either direction equal to the daily price limit
• B) an order to execute a futures trade only if it touches a certain price
• C) a movement of the position limit in the futures market
• D) an extreme movement in the commodity price index which shuts the market down
• E) None of these answers are correct.

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Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation, reducing the amount of outstanding stock.

Total Assets

The sum of all resources owned by a company, expressed in monetary terms, including both current and non-current assets.

Stockholders' Equity

The owners' claim on the company's assets, calculated as total assets minus total liabilities.

Treasury Stock

Shares of a company's own stock that have been reacquired by the company and held in its treasury.