Final answer:
To sell a stock quickly during a rapid drop, a market order should be set as it is executed at the best available price and ensures fast transaction. Other types of orders like limit orders may delay the sale due to price constraints.
Step-by-step explanation:
If your stock is dropping widely and you wish to sell out as quickly as possible, the type of order you should set is called a 'market order'. A market order is executed at the best available current price. It does not guarantee the price at which the stock will be sold, but it does ensure that the stock is sold as quickly as the market allows. This is in contrast to a limit order, which sets a specific price at which you are willing to buy or sell a stock, potentially delaying the sale if the stock does not reach that price.
Understanding the performance of the stock market can be complex. Different measures like the Dow Jones Industrial Average, the Standard & Poor's 500, and the Wilshire 5000 are used to gauge market performance by averaging the stock prices of a selection of companies.