A Buy-Stop Order Is an Order to Sell Stock at the Market

question 64

True/False

A buy-stop order is an order to sell stock at the market price when the price of the stock falls to a specified level.

---

Definitions:

Subsidiary Ledger

A detailed ledger that contains information for individual accounts, supporting the summary data in the general ledger.

Controlling Account

A general ledger account that summarizes the total balances of multiple subsidiary accounts.

Invoice

A document issued by a seller to a buyer that specifies the amount of products or services sold and the payment terms.

Discount

A discount refers to a reduction in the price of goods or services, often used as a strategy to increase sales or clear inventory.