Ms.Brown sold short 100 shares of common stock at $78 per share.The price has declined to $69.The outlook for the stock is mixed,so she would cover her short position if the stock moves up as much as $1 but hold if it continues down.Ms.Brown should place a

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A buy stop order is an order to buy a security at a specified price when the market price reaches or surpasses the stop price. In this case, if Ms. Brown places a buy stop order at $70, the order will only be executed if the price of the stock reaches or goes above $70. If the stock price continues to decline, the order will not be executed, and Ms. Brown can continue to hold her short position. If the price starts to move up, the buy stop order will trigger, and Ms. Brown can cover her short position. Therefore, a buy stop order is the best choice in this situation.

MsBrown Sold Short 100 Shares of Common Stock at $78