Which of the following is the most important purpose of issuing a stop order?

A) restricting the possible losses an investor is likely to incur
B) buying a stock if its price reaches a certain level
C) buying stock even without having adequate capital
D) buying a stock if its price falls below a certain level
E) minimizing the brokerage fee on a particular transaction

Answer: A
Explanation: Stop order is an order to sell a stock when its price falls to a particular point. A stop order is placed to limit an investor's losses.