If John Executes a Buy Order to Take Place When

question 13

Multiple Choice

If John executes a buy order to take place when the stock price of ABC Ltd.falls to $10,it is a(n)

• A)on-stop order.
• B)limit buy order.
• C)buy stop order.
• D)sell stop order.

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Definitions:

Par Common Stock

The face value of a share of common stock, as stated in the corporate charter, which is the minimum amount that must be paid for a share at issuance.

Paid-In Capital

The amount of capital provided by shareholders to a company in exchange for shares of stock, representing the funds contributed by investors during the issuance of shares.

Stockholders' Equity

Stockholders' Equity represents the owners' claim after all liabilities have been deducted from total assets. It's also known as shareholders' equity or equity.

Par Value

A nominal or face value assigned to a share of stock by the company's charter, unrelated to the market value.