An investor who buys a stock and wishes to limit the potential downside risk should:

An investor who buys a stock and wishes to limit the potential downside risk should:

An investor who buys a stock and wishes to limit the potential downside risk should:


A) buy a put.

B) buy a call.

C) enter a sell limit order.

D) enter a buy stop order.



Answer: A) buy a put.


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