Trading, Accounts & Prohibited ActsQuestion 194 of 398
An investor owns stock trading at $25 and is willing to sell only if she can get $28 or more per share. Which order should she enter?
a.A sell stop order at $28
b.A market order
c.A buy limit order at $28
d.A sell limit order at $28
Explanation
A sell limit order sets the minimum acceptable price, executing only at $28 or higher. A sell stop at $28 would sit below the market as a trigger and, being below the current $25... would trigger a sale at market, which is not what she wants.
Practice all 398 questions free — no signup required.
Related questions on this topic
- An investor needs the proceeds from a stock sale available the same day the trade is executed. Which settlement type should be specified?
- An investor is short 100 shares of a stock at $30 and wants to limit potential losses if the price rises. Which order should be placed?
- Which entity serves as the central securities depository that holds securities in electronic (book-entry) form and facilitates their transfer between members?
- A company with shares trading at $2 declares a 1-for-10 reverse stock split. What happens to an investor holding 1,000 shares?
- Compared with a stock that has a wide bid-ask spread, a stock with a very narrow spread most likely indicates:
- In the sequence of dividend dates, which date is when the board of directors formally announces that a dividend will be paid?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against FINRA Securities Industry Essentials (SIE) Exam · How we review