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- Which of the following statements is most accurate? A stop-sell order is placed by a bullish investor above the current market price. A stop-buy order is placed by a bearish investor above the current market price. A stop-sell order is placed by a bearish investor below the current market price. A stop-sell order is placed by a bullish investor at the current market price. A stop-sell order is placed by a bearish investor at the current market price.Describe a situation when an investor would want to use a market order.If an investor places a sell order with a stop price. When the stop price occurs, the order will be executed as a market order at the dealer's next available bid price. Group of answer choices True False
- Contrast and compare trading in face-to-face auctions, dealer markets, andautomated trading platforms.Why is trading volume an important consideration when undertaking technical analysis? O A. Trading volume can be used as a signal to support price and market trends O B. Trading volume represents private information not incorporated in prices OC. Both are correctFree markets work best when: a) Buyers and sellers have freedom to make choices. b) There are only a few buyers or sellers. c) The seller is in possession of critical information needed by the buyer to analyze the trade-offs of a choice. d) None of the above.
- Gross selling price includes: I. the amount of the seller's debt assumed by the buyer. II. the fair market value of services received by the seller from the buyer. Oa, Only statement II is correct. Ob. Only statement I is correct. Oc. Both statements are correct. Od. None of these statements are correct.In a destination contract for the sale of goods, which of the following is true concerning when the risk of loss passes: When a seller completes its delivery obligations When a buyer accepts conforming goods O When a seller complies with the perfect tender rule When a buyer covers after receiving non-conforming goodsThe underlying assumptions of technical analysis are that A.price move in predictable patterns B. Market value is determined by market news C. Investors are rational
- describe the process of short selling. define the theoretical fair value of an asset and relate it to the concept of market efficiency. discuss and relate the concepts of arbitrage and the law of one price. describe how and why risk is transferred from hedgers to speculators in derivative markets.The semistrong-form of market efficiency states that O current market prices do not reflect any current information. O current market prices reflect all pertinent information, whether it is publicly available or privately held. O all information contained in past price movements is fully reflected in current market prices. O current market prices reflect all publicly available information, whether it is historical or newly released.Assume you want to test the Efficient Market Hypothesis (EMH) by comparing alternative trading rules to a buy-and-hold policy. Discuss the three common mistakes that can bias the results against the EMH.