All of the Following Are True About a "Stop Sell

question 38

Multiple Choice

All of the following are true about a "stop sell" limit order, except

• A) your stock will be sold at the exact price indicated on the stop sell order.
• B) your stock will be sold at the first available trade once the stop sell limit price is reached.
• C) stop sell orders are a good way to reduce downside risk of a stock.
• D) a stop sell limit order can be issued for the trading day or as a good until canceled order.

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Definitions:

Inventory

Materials and goods a business holds for the ultimate goal of resale or processing in the manufacturing process.

Purchase

Acquiring goods or services in exchange for money or other compensation.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made for accruals, deferrals, and estimated items.

Adjusting Journal Entries

Entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.