A stop loss order may not be advisable
A) when an investor wants to protect a gain.
B) an investor wants is expecting an earnings announcement that may either exceed or fall short of expectations.
C) a stock exhibits wide and rapid price fluctuations.
D) when an investor wants to sell in the near future but still profit from any short-term price increases.

Question

Quizplus · Accepted Answer

A stop loss order may not be advisable when a stock exhibits wide and rapid price fluctuations because it could trigger the sale of the stock at an undesirable price due to temporary volatility.

A Stop Loss Order May Not Be Advisable