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FIN 335 Southern New Hampshire University Financial Markets Questions
- 1. How might long-term investors benefit from vigorous competition among short-term traders?
- 2. How does trading differ from speculating?
- 8.
- a. How does a stop order differ from a limit order?
- b. Suppose that a given market accepts only market and limit orders. Which of these two order types are more likely to be placed by buy-side market participants? Why?
- c. Again, suppose that a given market accepts only market and limit orders. Which of these two order types are more likely to be placed by sell-side market participants? Why?
- 9. Exactly what does an investor expect from her broker when she places a stop limit order with a stop price to buy at 50 and a limit price of 50.10? Why might an investor place such an order?