Gordon purchased 100 shares of Hemp,Inc.,at $48 a share.At the same time,he instructed his broker to sell these shares if the price fell to $40 a share.This is an example of a ____ order.

Question

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A stop order is an instruction to sell a security at a specified price or worse, after a specified price level has been reached. In this case, Gordon instructed his broker to sell the shares if the price fell to $40, which is a clear example of a stop order. A limit order, on the other hand, allows an investor to set the maximum price they are willing to pay for a security, while a market order is an instruction to buy or sell a security immediately at the best available current price. A month order is not a type of order commonly used in securities trading.

Gordon Purchased 100 Shares of Hemp,Inc