A request that an order be executed at the next available opportunity after the market price of the stock reaches a specified price is called a ____________ order.
A) market
B) limit
C) stop
D) round
E) discretionary

Question

Quizplus · Accepted Answer

A stop order is a request to execute an order once the market price of the stock reaches a specified price, known as the stop price. It is typically used as a risk management tool to limit losses or secure profits. Market orders are executed immediately at the best available price, while limit orders are executed at a specified price or better. Round and discretionary orders are not commonly used terms in trading.

A Request That an Order Be Executed at the Next