A stop order is an order to sell a stock when ________

A) an order is placed by a specific buyer in the stock exchange
B) its price falls to a particular point
C) its p/e ratio crosses a certain level
D) brokerage cost is lower than a specified amount
E) overall price index of the stock exchange exceeds a certain amount

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

Business

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A broker acting as an agent for both the buyer and seller in the same transaction:

a. bilateral agent b. unilateral agent c. general agent d. dual agent

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