If an Investor Is Attempting to Buy a Stock That

question 30

Multiple Choice

If an investor is attempting to buy a stock that is very volatile,it would be best to use a:

• A)market order
• B)limit order
• C)stop-loss order
• D)contingency order

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Definitions:

Validity Effect

The phenomenon where a belief or a statement is more likely to be accepted as true the more it is repeated or encountered, regardless of its actual validity.

Exposure Effect

The psychological phenomenon where repeated exposure to a stimulus increases an individual's preference for that stimulus.

Contrast Effect

A psychological phenomenon wherein the perception or judgment of something is influenced by the comparison with something else, often leading to exaggeration of differences.

Appeal to Fear

A persuasive technique that attempts to influence people’s behavior by making them feel afraid of the consequences of not taking a particular action.