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Economic Theory of Choice Under Certainty

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Economic Theory of Choice Under Certainty

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Questions and Answers

What is the primary purpose of a stop-loss sell order?

To buy a security at a specific price

To sell a security at a higher price

To lock a gain

To limit a potential loss (correct)

At what price would a stop-loss sell order be triggered?

At the best price available

At the offer price

At the bid price

At the pre-defined limit or below (correct)

What is the opposite of a stop-loss sell order?

Stop-gain sell order

Stop-loss buy order (correct)

Limit order to buy

Market order to sell

What happens when a stop-loss sell order is activated?

It becomes a market order to sell Signup and view all the answers

What is the benefit of using a stop-loss order?

It helps to limit potential losses Signup and view all the answers

What is the relationship between the bid price and the ask price?

The bid price is always lower than the ask price Signup and view all the answers

What can be inferred from the data in the table?

The best price for buyers is Rs 92.59259 Signup and view all the answers

What is the percentage change in the price?

2.02% decrease Signup and view all the answers

What is the significance of the 'Worst' column in the table?

It represents the lowest price Signup and view all the answers

What is the relationship between the 'Best' and 'Worst' prices?

The 'Best' price is always lower than the 'Worst' price Signup and view all the answers