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:

2. What is a short sale? Provide an example in your own words.

Your Answer:

3. Describe buying on margin. Provide an example in your own words.

Your Answer:

4. Why is it illegal to trade on insider information? Provide an example in your own words