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A Stop Loss Order May Not Protect an Investor's Profits

Question 94

Multiple Choice

A stop loss order may not protect an investor's profits if


A) the price drops even slightly below the stop price before the order can be executed.
B) the price enters a prolonged period of gradual decline.
C) an unexpected event cause the price to drop steeply when the markets are closed.
D) the stop loss price is never reached.

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