Which One of the Following Statements Is Correct About a Good-'Til-Cancelled

question 23

Multiple Choice

Which one of the following statements is correct about a good-'til-cancelled order?

• A) The order generally expires after six weeks.
• B) The order will automatically renew unless cancelled by the customer.
• C) The order helps customers obtain a specific price without watching the market continuously.
• D) The order will be cancelled at the end of the trading day if not executed.

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Definitions:

Simple Rate of Interest

Interest calculated only on the principal amount of a loan or deposit, without compounding.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically used for the financing of payroll, accounts payable, inventories, and meeting other short-term liabilities.

Price

The amount of money required to purchase a good, service, or asset.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's cost.