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

Question

Quizplus · Accepted Answer

When the specified stop price is reached, the stop order becomes a market order and executes at the next available price, which could be higher or lower than the stop price. Therefore, option A is the correct answer. Option B, a GTC order, means the order will remain active until it's filled or cancelled. Option C, a day order, means the order is active only for the current trading day and will be cancelled if not filled by the end of the day.

A Stop Order Is an Order to Buy or Sell