SIE practice questionmediumOrder Types
Which of the following orders is most likely to result in a stock being sold during a severe price gap downward?
- ASell stop order✓ Correct answer
- BSell limit order
- CBuy stop order
- DBuy limit order
Explanation
Why A — Sell stop order
A sell stop order becomes a market order and executes at the best price available, even if a gap occurs. Limit orders might not execute if the price gaps below the limit.
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