Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

Finra Exam Series-7 Topic 6 Question 79 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 79
Topic #: 6
[All Series-7 Questions]

Bubba owns 100 shares of XYZ at $58. He needs to limit his loss to 5 points or less and will accept a longer time for the order to be executed, to make sure the loss does not exceed 5 points.

Which of the following orders would be the best recommendation?

Show Suggested Answer Hide Answer
Suggested Answer: B

balance sheet. This report reflects the entire condition of the company by showing all assets, liabilities, and components of net worth.


by Ernie at Dec 24, 2023, 09:46 PM

Limited Time Offer

25%

Off

Get Premium Series-7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Gerry
1 months ago
Back in my day, we just used a good old-fashioned paper bag to limit our losses. These fancy trading orders are making my head spin!
upvoted 0 times
Scot
1 days ago
C) sell stop order
upvoted 0 times
...
Lisbeth
2 days ago
B) sell stop-limit order
upvoted 0 times
...
Brittney
13 days ago
C) sell stop order
upvoted 0 times
...
Barrett
15 days ago
B) sell stop-limit order
upvoted 0 times
...
Erinn
18 days ago
A) sell limit order
upvoted 0 times
...
Ivan
26 days ago
A) sell limit order
upvoted 0 times
...
...
Christa
1 months ago
Hold up, why would anyone choose a buy stop order in this situation? That's just asking to lose more money than necessary.
upvoted 0 times
...
Pilar
1 months ago
I'm going with the sell limit order. That way, I can control the price at which my shares are sold, and still limit my loss to 5 points.
upvoted 0 times
...
Elise
2 months ago
I'm not sure, but I think a sell stop order could also work to limit the loss for Bubba.
upvoted 0 times
...
Ahmad
2 months ago
Hmm, a sell stop order seems like the way to go. It'll execute the trade as soon as the price hits my stop, which is exactly what I need to protect my investment.
upvoted 0 times
Kristeen
20 days ago
User 2: I agree, that way you can protect your investment and limit your loss to 5 points.
upvoted 0 times
...
Theodora
21 days ago
User 1: I think a sell stop order would be best. It will execute the trade as soon as the price hits your stop.
upvoted 0 times
...
Devorah
23 days ago
User 2: Yeah, that way you can protect your investment by executing the trade as soon as the price hits your stop.
upvoted 0 times
...
Leeann
26 days ago
User 1: I think a sell stop order would be the best choice.
upvoted 0 times
...
...
Lang
2 months ago
I agree with Tatum. A sell stop-limit order would help Bubba limit his loss to 5 points or less.
upvoted 0 times
...
Ronald
2 months ago
As a certified trader, I know that a sell stop-limit order would be the best choice here to limit my loss to 5 points or less.
upvoted 0 times
...
Tatum
2 months ago
I think the best recommendation would be a sell stop-limit order.
upvoted 0 times
...
Lauryn
2 months ago
I think a sell stop order could also work, as it would trigger a sale when the price reaches a certain point to limit the loss.
upvoted 0 times
...
Fernanda
2 months ago
I agree with Dana. A sell stop-limit order would help Bubba limit his loss to 5 points or less.
upvoted 0 times
...
Dana
2 months ago
I think the best recommendation would be a sell stop-limit order.
upvoted 0 times
...

Save Cancel