Which of the following is an order to sell a stock when the market price drops to or below a specified level?
A) A market order
B) A limit order
C) A stop-loss order
D) A fill-or-kill order
E) A day order

Question

Quizplus · Accepted Answer

A stop-loss order is an order placed to sell a stock when it drops to a certain price, called the stop price. This limits an investor's losses in the event that the stock price continues to drop. A market order (A) is an order to buy or sell a stock at the current market price, which may not be desirable if the price is dropping rapidly. A limit order (B) is an order to buy or sell a stock at a specified price or better, but does not provide protection against price drops. A fill-or-kill order (D) is an order to buy or sell a stock immediately, with the entire order filled at once or canceled if it cannot be. A day order (E) is an order that expires at the end of the trading day if it is not filled.

Which of the Following Is an Order to Sell a Stock