Final answer:
The correct answer is A. The order will be executed immediately, as the current market price is below the stop and limit price, indicating that the conditions for the stop-limit order have been met .
Step-by-step explanation:
You asked what would happen with Mark's stop-limit order to sell 100 shares at a $21 stop and $18 limit if the current market price is $16. A stop-limit order is a type of stock market order that combines.
The features of a stop order and a limit order. Once the stop price is reached, the order turns into a limit order and is filled up to the point where specified price limits can be met.
In this scenario, the correct statement is that the order will be executed immediately (A). Since the current market price is below both the stop and the limit prices.
The order has already been triggered when the stock price fell to $21, turning into a limit order.
However, because the market price is now even lower at $16, which is below the limit price of $18, it can be sold immediately at the current market price since it meets the seller's criteria of being no less than $18.