A Stop Order Is an Order to Buy or Sell

question 15

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 that

• 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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Definitions:

Intense Apprehension

A strong feeling of anxiety or fear about something that is happening or might happen.

Agitated

A state of nervousness or unrest, often characterized by an inability to remain calm or still.

Agoraphobia

An anxiety disorder characterized by an intense fear of being in places or situations where escape may be difficult or help might not be available.

Overwhelmed By Anxiety

A state of feeling excessively worried, nervous, or uneasy to a degree that it may interfere with daily activities.