CFA Practice Question
The market price of stock Y is now $30. An order specifies the stock must be sold once the price drops to $25 or below. This order is likely to be a ______.
A. market order
B. limit order
C. stop order
Explanation: This is an example of a stop-loss order, which specifies that the stock should be sold if its price drops to a certain level.
User Contributed Comments 2
| User | Comment |
|---|---|
| panoskol | Isn't it limit if you are short? |
| timkalt | Limit: Buy when price drops |