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A Stop Order Is an Order to Buy or Sell

Question 51

Multiple Choice

A stop order is an order to buy or sell a stock once the price of the stock reaches a specified price,known as the stop price.When the specified price is reached,your stop order becomes a market order.The advantage of a stop order is that


A) you don't have to monitor how a stock is performing on a daily basis.
B) the stop price can be activated by a short-term fluctuation in a stock's price.
C) once your stop price is reached,your stop order becomes a market order and the price you receive may be much different from the stop price,especially in a fast-moving market where stock prices can change rapidly.
D) all of the options

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