Series 7 - General Securities Representative Exam
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A customer tells their broker "Sell 500 shares of ABC, Stop 102, Day". What happens when the stock price trades at 102?
The stop order is now a good til cancel order
A
The stop order is executed at 102
B
The stop order is triggered and turns into a sell limit order
C
The stop order is triggered and turns into a sell market order
D
Explanations
Stop orders turn into market orders once the stop is triggered at the stop price