,INV2601 Exam
Pack
Contains:
✓ Exam Questions with Solutions
✓ (2010-2014)
, 1
INV2601 OCT/NOV 2014 EXAM MEMO
Question Option Solution
1. 2
[( ) ]
[ ]
Refer to Study guide: Page 9
2. 4 Participation bonds schemes
3. 4 None of the statements are correct.
A stop loss order is a conditional market order that directs the trade
should the share price decrease to a predetermined level.
A stop buy order is used by short sellers who want to minimise any loss if
the share increases in value.
4. 1 Statement 1 is most accurate
Statement 2 is incorrect because competing investors attempt to adjust
prices rapidly to reflect new information which arrives randomly into the
financial markets
, 2
5. 2
6. 2
⁄
7. 1
⁄