Kelly wants to sell 600 shares of DeLuxe stock at the going market price if the stock price falls to $42 a share. Which type of order should she place?

Question

Quizplus · Accepted Answer

A stop order will trigger a sale of the shares if the stock price falls to a certain level, in this case $42 a share. This ensures that Kelly can sell her shares at the desired price if the stock falls to that level, but if the stock does not fall to that level, the order will not be executed. A limit order would only sell the shares at a specific price or higher, which may not happen if the market price falls below that level. A market order would sell the shares immediately at the current market price, which may not be the desired price of $42 a share. Fixed and loss orders are not relevant in this context.

Kelly Wants to Sell 600 Shares of DeLuxe Stock at the Going