A Stop-Limit Order Is an Order to Buy or Sell

question 38

Multiple Choice

A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order.Once the stop price is touched in the market,the stop-limit order becomes a limit order to buy or to sell at the limit price.Which of the following are true?

• A)The benefit of a stop-limit order is that the investor can control the price at which the trade will get executed.
• B)A stop-limit order may never get filled if the stock's price never reaches the specified limit price.This may happen especially in fast-moving markets where prices fluctuate wildly.
• C)The use of stop limit orders is much more frequent for stocks that trade on an exchange than in the over-the-counter (OTC) market.
• D)In addition, your broker-dealer may not allow you to place a stop limit order on some securities or accept a stop limit order for OTC stocks.
• E)All of the above are true

---

Definitions:

Audience

The group of people targeted by a message, performance, or product.

Road Safety

Measures and strategies implemented to prevent road accidents and protect road users, including drivers, pedestrians, and cyclists, aiming to reduce injury and fatalities.

World Road Safety Day

An international observance dedicated to raising awareness about road safety and promoting measures to prevent road traffic deaths and injuries.

Seat Belts

Safety devices consisting of adjustable straps intended to secure a passenger or driver in a vehicle to reduce injury during collisions.