Finra Exam Series-7 Topic 6 Question 79 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 79
Topic #: 6

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?

Asell limit order

Bsell stop-limit order

Csell stop order

Dbuy stop order

Show Suggested 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

Elise

2 days 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 days 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

...