A) Sell limit order
B) Sell stop-limit order
C) Sell stop order
D) Buy stop order
The correct answer is B) Sell stop-limit order
sell stop-limit order would be the best choice. A
sell stop-limit order specifies a price, but will
not turn into a market order. This order will only
get executed at the price or better. Stop orders,
although quicker in execution, will turn into market
orders and the customer will not be guaranteed a specific
price. Stop-limit orders are risky, in that the order
may or may not get executed, but in this situation,
it is the best choice.
© 2004 American Investment Training, Inc.
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