Final answer:
The statement is false; limit orders are useful for controlling the price in volatile conditions, which might be more beneficial for stocks that are not stable in price.
Step-by-step explanation:
The statement that a limit order is especially useful for stocks that are relatively stable in price is false. Limit orders are instructions to buy or sell a stock at a specific price or better and are useful for having control over the price paid or received when the stock has significant volatility. This way, investors have the potential to buy at a lower price or sell at a higher price than the current market prices. The use of limit orders is not restricted to stable stocks; in fact, they might be more beneficial for stocks that experience larger price swings.
Investors in the stock market often rely on confidence intervals to estimate the true proportion of stocks that go up or down each week. Likewise, businesses that sell personal computers might use confidence intervals to estimate the proportion of households in the United States that own personal computers. Understanding these statistics can guide investment decisions and market strategies.