A(n) ________ is an order to a stock broker to sell a security if its price falls to or below a specified amount.
A) limit order
B) stop order
C) round lot order
D) market order
E) odd lot order

Question

Quizplus · Accepted Answer

A stop order is used to limit losses by automatically selling a security once its price falls to a specified level. This type of order is also sometimes referred to as a stop-loss order. A limit order, on the other hand, is an order to buy or sell a security at a specified price or better, while a market order is an order to buy or sell a security at the current market price. Round lot and odd lot orders refer to the quantity of shares being traded and are not relevant to this question.

A(n) ________ Is an Order to a Stock Broker to Sell