A Stop Order Is an Order to Buy or Sell

question 14

Multiple Choice

A stop order is an order to buy or sell a stock once the price of the stock reaches a specified price,known as the stop price.When the specified price is reached,your stop order becomes a market order,The advantage of a stop order is

• A)you don't have to monitor how a stock is performing on a daily basis.
• B)the stop price can be activated by a short-term fluctuation in a stock's price.
• C)once your stop price is reached, your stop order becomes a market order and the price you receive may be much different from the stop price, especially in a fast-moving market where stock prices can change rapidly.
• D)all of the above are advantages

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