You purchased XYZ stock at $50 per share. The stock is currently selling at $65. Your gains could be protected by placing a ________.

Question

Quizplus · Accepted Answer

Placing a stop-loss order would protect your gains in case the stock's price drops. It would automatically sell your shares if the price falls to a certain level, preventing further losses. A limit buy or sell order would not protect your gains but rather help you buy or sell the stock at a specific price. A market order would execute immediately at the current market price, which might not be the best option for protecting your gains.

You Purchased XYZ Stock at $50 Per Share