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What is the maturity of a bond? Maturity refers to the time when an investment ends. When maturity happens, the investor is either on the hook for...

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Why do companies buy back or repurchase their own stock? Companies buy back their own stock because it helps them to increase the value of stock an...

Finance: What is Devaluation?
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What is Devaluation? The process by which a nation deliberately lowers the value of its currency relative to other international currencies is call...

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Finance: What are Limit Order, Sell Limit and Stop Limit? 17 Views


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Description:

What is a limit order, and how can we be sure we never have one of those in place when we go to a doughnut shop?

Language:
English Language

Transcript

00:00

Finance a la shmoop what is a limit order? you want to sell a thousand shares

00:07

of Colonel electric it was demoted after they cut their dividend the shares have [Scissors cuts dividend in half]

00:13

been trading wildly between $15 and $25 a share you don't want to feel like a

00:19

moron for having sold them at fifteen bucks when six weeks later they kissed

00:24

25 with tongue so what do you do well you put in a limit order that is you put

00:30

a limit of a minimum price of 25 bucks a share for Colonel Electric such that [Pile of stocks appear]

00:36

those shares will simply sit in your account unsold maybe forever until

00:41

somebody out in the wild blue yonder of Stockland is willing to pay twenty five [Woman standing at a colonel electric stand]

00:47

dollars or more for the shares where you have a minimum price limit of 25 bucks a

00:52

share in your order so here's to hoping they sell and don't get further demoted [Man carries stock into car]

00:57

Sargent Electric is just a place you don't want to go

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