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Financial terms in "Personnel Management"
1. Induction 2. risk manager 7. Employee 8. competence 9. Leadership 10. service contract 11. Employer 12. Employment Law 13. Merit Rating 14. Retire 15. Retirement 17. retention 18. facilitation 21. administrator 22. Expenses 23. Leader 24. perk 26. benefit 27. salary review | 28. CARDs 30. Notice Period 33. Federal Insurance Contributions Act 35. Perquisites 36. Cafeteria Plan 40. CV 41. discrimination 43. Arbitration 45. full employment 46. moonlighting 47. Parkinson's Law 48. Human capital 49. remuneration 51. Pink Slip 52. Redundancy 53. Turnover 54. Severance 55. Core competence | 58. fringe benefits 59. Per Diem 60. dismissal 61. Green Card 62. Manager 63. management 65. orientation 66. Self-Employed 67. layoff 69. vesting 70. FICA 73. secondment 74. ergonomics 76. labor 78. benefit in kind 79. Conciliation |
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Definition / Meaning of
Stop Order
Categories: Investing and Trading, Brokerages,
You can issue a stop order, which instructs your broker to buy or sell a security once it trades at a certain price, called the stop price. Stop orders are entered below the current price if you are selling and above the current price if you are buying. Once the stop price is reached, your order becomes a market order and is executed.For example, if you owned a stock currently trading at $35 a share that you feared might drop in price, you could issue a stop order to sell if the price dropped to $30 a share to protect yourself against a larger loss. The risk is that if the price drops very quickly, and other orders have been placed before yours, the stock could actually end up selling for less than $30. You can give a stop order as a day order or as a good 'til canceled (GTC) order. You might use a buy stop order if you have sold stock short anticipating a downward movement of market price of the security. If, instead, the price rises to the stop price, the order will be executed, limiting your loss. However, there is a risk with this type of order if the market price of the stock rises very rapidly. Other orders entered ahead of yours will be executed first, and you might buy at a price considerably higher than the stop limit, increasing your loss.
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