Question

Gavin has owned mnop stock for several years and has seen the stock increase in value from $20 to $35. he wants to "lock in" his gains, so he needs to place an order that will sell his stock at the next available opportunity after its market price drops to $33. what kind of order should he use?

Answer 1

Gavin should place a "stop-loss" order, which is an order sell a stock when if reaches a certain price, It is designed to limit an investor's loss when a stock price is falling. Note that once the stop price is reached, a market order is placed, and the actual sales price could be less than the stop price