Professional Documents
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Limit Orders
- A limit order is an instruction to trade shares at a specific price or better.
Limit Buy Order: buy shares at or below the limit
Limit Sell Order: sell shares at or above the limit
Stop Orders
- A stop order is an instruction to trade shares at a specific price or worse.
Stop-Buy Order: buy shares at or above the limit (usually
accompany with short sale)
Stop-Loss Order: buy shares at or below the limit
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a. Suppose you have submitted an order to your broker to buy at market. At what price will
your trade be executed?
b. Suppose you have submitted an order to sell at market. At what price will your trade be
executed?
c. Suppose you have submitted a limit order to sell at $55.62. What will happen?
d. Suppose you have submitted a limit order to buy at $55.37. What will happen?
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closed-end funds
- no redemption and issuance of shares after establishment.
- price may be at premium or discount to NAV.
- traded continuously on exchanges.
Front-End Load
- One-time commission paid when you purchase the shares. Loads effectively
reduce the amount of money invested.
Back-End Load
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- One-time exit fee incurred when you sell your shares. Typically, funds that
impose back-end loads reduce them by certain percentage for every year the
funds are left invested.
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