SIE practice questioneasyOrder Types
An investor wants to purchase a stock if it rises to $45 or higher. Which order type should be used?
- ASell limit order
- BBuy limit order
- CSell stop order
- DBuy stop order✓ Correct answer
Explanation
Why D — Buy stop order
A buy stop order is triggered when a stock rises to or above the stop price (in this case $45), entering a market order to buy. Limit and sell orders are used differently.
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