Question

If an investor places a ________ order, the stock will be sold if its price falls...

If an investor places a ________ order, the stock will be sold if its price falls to the stipulated level. If an investor places a ________ order, the stock will be bought if its price rises above the stipulated level.

limit; market

buy stop; stop-loss

market; limit

stop-loss; buy stop
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Answer #2

Answer:Stop Loss:buy stop

If an investor places a stop loss order, the stock will be sold if its price falls to the stipulated level. If an investor places a buy stop order, the stock will be bought if its price rises above the stipulated level.

A stop loss order refers to the order placed with a stock broker to buy or sell when the stock reaches a stipulated price.It is intended to cap an investors loss on a security position.

A buy stop order requires the broker to purchase the stock when it's price reaches a stipulated price level.The buy stop order aims to provide profit from an uptick in share price and is also used to shield against unlimited losses that may arise from an uncovered short position .

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