A stop order to sell at $46 will be executed:
A)at a price of $46 at the end of the day on which the order was placed.
B)at $46 following the first trade with a price below $46.
C)as a market order once a trade occurs at a price of $46 or less.
D)immediately at a price of $46.
E)as a market order once a trade occurs at a price of $46 or higher.

Question

Quizplus · Accepted Answer

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. In this case, the stop order is set to sell at $46. Once the stock price reaches $46 or less, the stop order will be triggered and executed as a market order. This means that the order will be filled at the prevailing market price, which could be higher or lower than $46, depending on the demand and supply in the market.

A Stop Order to Sell at $46 Will Be Executed