Made fantastic investment

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Arianna just made a fantastic investment: She purchased 400 shares in Great Gains Corporation for $21.50 per share. Yesterday the stock closed at $56.50 per share. In order to lock in her gains, she has decided to employ a stop-loss order Assuming she sets the order at $56, what is likely to happen? Why might this not be a wise decision? At what price would you recommend setting the stop-loss Why?

Reference no: EM131014231

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