SIE practice questionmediumFINRA Rules
If a customer instructs their broker to 'sell ABC if it falls to $45,' what should the broker enter?
- AA sell limit order at $45
- BA sell stop order at $45✓ Correct answer
- CA sell market order
- DA buy stop order
Explanation
Why B — A sell stop order at $45
A sell stop order triggers when the price falls to the specified level. A limit order at $45 would only execute at $45 or above (not what the customer wants).
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