SIE practice questioneasyOrder Types
A client wants to sell shares only if the price falls to $40 or lower. What order should they place?
- ALimit order
- BStop order✓ Correct answer
- CMarket order
- DFill-or-kill order
Explanation
Why B — Stop order
A stop order becomes a market sell order when the stop price is triggered ($40). Limit orders set a minimum sale price. Market orders sell at the next available price; fill-or-kill is for immediate execution.
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