An order placed by an investors seeking to sell stock when the price reaches a specified minimum is a ____ order.
A)market
B)stop-loss
C)limit
D)none of the above

Question

Quizplus · Accepted Answer

A stop-loss order is placed to sell stock when the price falls to a certain level, which helps protect the investor from large losses in case the stock drops significantly. A market order is an order to buy or sell a stock at the best available price, and a limit order is an order to buy or sell a stock at a specified price or better. Therefore, the correct answer is B, stop-loss order.

An Order Placed by an Investors Seeking to Sell Stock