Summary cf week 7 investments assignment 00.doc Week 7 Homework: Definitions FIN100: Principles of Finance Week 7 Homework Instructions: Please respond to the following questions: 1.Describe the differences among the following three types of orders: marke

cf week 7 investments assignment Week 7 Homework: Definitions FIN100: Principles of Finance Week 7 Homework Instructions: Please respond to the following questions: 1.Describe the differences among the following three types of orders: market, limit, and stop loss. Provide examples of each in your own words. Your Answer: Market orders are rapid purchases or sales that are the finest prices possible. For example, when an investor places an order to purchase 500 shares, they will receive those 500 shares, but they all will be the stocks asking price. Limit orders are the highest and lowest selling prices that are defined by investors. For example, if a trader is looking into buying Amazon stock with only a limit of $25, they will not pay anything above that price. When the stock prices start to fall to a defined level, an order is put in to place to sell stock and this called a stop-loss order. For example, an