The beginning of the trading day

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Reference no: EM131960676

1. At the beginning of the trading day, John places a limit sell order for 500 shares of DEF stock at $75/share while DEF is trading at $72/share. Throughout the course of the day, DEF trades between a range of $71-$74 per share. Which of the following could occur with John's brokerage account if his order was a day order?

John's order is executed at $71/share.

John's order is executed at $74/share.

John's order is executed at $72/share.

None of the above

2. You just placed a stop limit order to sell 900 shares at $50 stop, $47 limit. Which one of the following statements is correct concerning this order if the current market price is $48?

The broker will attempt to sell the stock at the current market price.

The broker will only attempt to sell the stock once it reaches $50.

The broker will wait to see if the price climbs to $50 before selling the shares.

None of the above

Reference no: EM131960676

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