Essentials of Investments (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Essentials of Investments (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
10th Edition
ISBN: 9780077835422
Author: Zvi Bodie Professor, Alex Kane, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 3, Problem 6PS
Summary Introduction

To explain:

The differences between a stop loss order, limit sell order and a market order.

Introduction:

The stop loss order, a limit sell order and a market order are used by the investors for different purposes. In stop loss order, broker is asked to buy or sell particular stock when it reaches a certain price level. While in limit sell order, broker is asked to sell the stock at an specified price, investor use limit sell order to sell the stock at a better price. Whereas the market order also known as unrestricted order, as no restrictions about buy or sell is included in this same.

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