The intention to sell 5000 AMP shares at not less than $5.20 each would be best achieved by:
A)a limit order
B)an at-market sell order
C)a dealer's bid price
D)a dealer's offer price
E)short selling.

Question

Quizplus · Accepted Answer

A limit order allows the investor to set a minimum price they are willing to sell their shares for. In this case, setting a limit order to sell 5000 AMP shares at not less than $5.20 each would ensure that the shares are only sold at or above that price, protecting the investor's desired selling price. An at-market sell order may result in the shares being sold at a lower price than desired, while a dealer's bid or offer price would not guarantee the desired selling price. Short selling is not relevant in this scenario as it involves borrowing shares to sell with the intention of buying them back at a lower price in the future.

The Intention to Sell 5000 AMP Shares at Not Less