CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

Nabil buys 100 shares of "take a chance technologies" stock at $20 per share and wants to limit his losses. He could place a ______ order to sell 100 shares at $15, good until cancelled.
A. stop
B. market
C. put

User Contributed Comments 8

User Comment
garachen A limit order works as well
evica That's exactly what I think too.
koushaku Think Stop - Loss
Limit - Profit
moose1969 limit orders do not limit losses. only "stop loss" orders do. A limit order is an order to sell at or above the present market.
mtcfa Stop: triggers on the way down for long positions and triggers on the way up for short positions. You "stop" the bleeding. A limit order is meant to buy low or sell high.
toto123 limit... buys below current mkt price and lock in profits
Stop... buy above current mkt price and limit ur loss
roxy143 stop-loss, limit - profit
chris21Feb If you place a limit order at $15, since you are selling cheaper than the current price, your order will be executed immediately, therefore you won't be trading at $15.
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