If an investor places a ________ order, the stock will be sold if its price falls to the stipulated level. If an investor places a ________ order, the stock will be bought if its price rises above the stipulated level.

Question

Quizplus · Accepted Answer

The first blank asks for an order that sells a stock if its price falls to a certain level, which is a stop-loss order. The second blank asks for an order that buys a stock if its price rises above a certain level, which is a buy stop order. Therefore, the correct choice is C.

If an Investor Places a ________ Order, the Stock Will