A Stop Loss Order May Not Be Advisable

question 12

Multiple Choice

A stop loss order may not be advisable

• A) when an investor wants to protect a gain.
• B) an investor wants is expecting an earnings announcement that may either exceed or fall short of expectations.
• C) a stock exhibits wide and rapid price fluctuations.
• D) when an investor wants to sell in the near future but still profit from any short-term price increases.

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Definitions:

Innovation Lag

The delay between the introduction of a new idea, process, or product and its acceptance or implementation in the market or society.

New Idea

A novel concept, thought, or innovation that has not been previously implemented or explored.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at a given price.

Demographics

Demographics refer to statistical data relating to the population and the particular groups within it, often used to identify market segments.