CFA Practice Question

There are 275 practice questions for this study session.

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
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