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?

    <p>It becomes a market order to sell (B)</p> Signup and view all the answers

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

    <p>It helps to limit potential losses (C)</p> Signup and view all the answers

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

    <p>The bid price is always lower than the ask price (B)</p> Signup and view all the answers

    What can be inferred from the data in the table?

    <p>The best price for buyers is Rs 92.59259 (A)</p> Signup and view all the answers

    What is the percentage change in the price?

    <p>2.02% decrease (B)</p> Signup and view all the answers

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

    <p>It represents the lowest price (B)</p> Signup and view all the answers

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

    <p>The 'Best' price is always lower than the 'Worst' price (C)</p> Signup and view all the answers

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