SIE practice questionhardOrder Types
A client wants an order to sell 2,000 shares if the stock falls to $40, but only if the shares can be sold at $39.90 or better. The order would be entered as:
- ASell stop-limit with stop at $40 and limit at $39.90✓ Correct answer
- BSell stop at $40
- CSell limit at $39.90
- DMarket order at $40
Explanation
Why A — Sell stop-limit with stop at $40 and limit at $39.90
A stop-limit order combines both a trigger price ($40) and a minimum sale price ($39.90). The other choices don't provide both conditions; a market order provides no price control.
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