Which one of the following orders is frequently used as a means to limit losses resulting from a short sale?
A)limit
B)market
C)day
D)stop-sell
E)stop-buy

Question

Quizplus · Accepted Answer

A stop-buy order is commonly used in short selling as a way to limit potential losses. If the price of the stock being shorted rises to a certain level, the stop-buy order is triggered, buying back the stock to cover the short position, thus capping the loss.

Which One of the Following Orders Is Frequently Used as a Means