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 Series-7 Exam - 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:

0/2000 characters
Submit Cancel
Gwenn
6 months ago
Bubba's shares are at $58, needs to limit loss to $53.
upvoted 0 times
...
Elfrieda
6 months ago
Wait, can a stop order really protect against losses like that?
upvoted 0 times
...
Gracia
6 months ago
A sell limit order won't help here.
upvoted 0 times
...
Alexia
7 months ago
I disagree, B could work too.
upvoted 0 times
...
Anastacia
7 months ago
C is the best choice to limit losses.
upvoted 0 times
...
Sunny
7 months ago
I’m confused about the difference between a stop order and a stop-limit order. I hope I remember the right one for this scenario!
upvoted 0 times
...
Alberto
7 months ago
I practiced a similar question where a sell stop order was recommended to protect against losses. I feel like that could apply here too.
upvoted 0 times
...
Janine
7 months ago
I'm not entirely sure, but I remember something about stop-limit orders being tricky. They might not execute if the price drops too quickly.
upvoted 0 times
...
Lucy
8 months ago
I think a sell stop order might be the best choice here since it triggers when the price drops to a certain level, which helps limit losses.
upvoted 0 times
...
Laquanda
8 months ago
I'm leaning towards B as well, the sell stop-limit order. It gives Bubba the flexibility to manage his risk while still trying to get a decent price for the shares.
upvoted 0 times
...
Lemuel
8 months ago
Okay, I've got it. Since Bubba wants to limit his loss, the best option would be a sell stop-limit order. That way, he can set the stop price to $53 (58 - 5) and the limit price to ensure the order only executes at that price or better.
upvoted 0 times
...
Cruz
8 months ago
Hmm, I'm a bit confused here. Bubba owns 100 shares of XYZ, but the question doesn't specify whether he wants to buy or sell. I'll need to think this through carefully.
upvoted 0 times
...
Cheryl
8 months ago
This looks like a straightforward question on order types. I think the key is to focus on Bubba's requirement to limit his loss to 5 points or less.
upvoted 0 times
...
Fairy
8 months ago
I'm pretty confident the answer is B, sell stop-limit order. That allows Bubba to control the maximum loss while still getting the best possible price.
upvoted 0 times
...
Frederick
8 months ago
Ah, I think I've got it! The Verify Scope process would need the Project management plan as an input to confirm the approved scope. That's my best guess.
upvoted 0 times
...
Jaime
8 months ago
Okay, I think I've got this. The key is to focus on getting the requirements validated and approved by the customer before development starts. That's the most important first step.
upvoted 0 times
...
Gerry
1 year 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
Monte
12 months ago
D) buy stop order
upvoted 0 times
...
Scot
12 months ago
C) sell stop order
upvoted 0 times
...
Lisbeth
12 months ago
B) sell stop-limit order
upvoted 0 times
...
Brittney
1 year ago
C) sell stop order
upvoted 0 times
...
Barrett
1 year ago
B) sell stop-limit order
upvoted 0 times
...
Erinn
1 year ago
A) sell limit order
upvoted 0 times
...
Ivan
1 year ago
A) sell limit order
upvoted 0 times
...
...
Christa
1 year 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 year 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
1 year 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
1 year 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
1 year ago
User 2: I agree, that way you can protect your investment and limit your loss to 5 points.
upvoted 0 times
...
Theodora
1 year 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
1 year 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
1 year ago
User 1: I think a sell stop order would be the best choice.
upvoted 0 times
...
...
Lang
1 year 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
1 year 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
1 year ago
I think the best recommendation would be a sell stop-limit order.
upvoted 0 times
...
Lauryn
1 year 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
1 year 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
1 year ago
I think the best recommendation would be a sell stop-limit order.
upvoted 0 times
...

Save Cancel