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FIN100: Principles of Finance Week 7 Homework

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Week 7 Homework: Definitions By: John Helton FIN100: Principles of Finance Dr. Cecily Anthony November 20, 2020 Week 7 Homework Instructions: Please respond to the following questions: ... 1. Describe the differences among the following three types of orders: market, limit, and stop loss. Provide examples of each in your own words. Your Answer: Market order is something you would do if you want to buy or sell at the best available price. Limit order is something you would do if you want to buy at a limited cost or limited amount received. Stop loss is something you would do if you want to protect yourself if you buy and it rises then it suddenly drops. 2. What is a short sale? Provide an example in your own words. Your Answer: short sale is securities that the seller does not own. 3. Describe buying on margin. Provide an example in your own words. Your Answer: Buying on margin is when an investor buys an asset by borrowing the balance owed. 4. Why is it illegal to trade on insider information? Provide an example .............................................continued [Show More]

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