Question

Here is some price information on Marriott: Bid Ask Marriott 18.61 18.80 You have placed a stop-loss order to sell at $18.70. What are you telling your broker? To attempt to buy the stock as soon as the stock trades at a bid price of $18.7 or less. To attempt to sell the stock as soon as the stock trades at a bid price of $18.7 or less.

Answer 1

To attempt to buy the stock as soon as the stock trades at a bid price of $18.7 or less.

Step-by-step explanation:

We have placed a stop order to sell the stock of Marriott at $18.7 when bid ask Marriott is $18.61 and $18.80, however if the broker sell the stock for less than $18.7 it will be considered a loss which is not the case in a stop loss order. therefore the stop order will be to buy the stock at a price of $18.7 or less which can be sold for $18.7 or more in future to avoid loss on selling the stock.