Which of the following orders is most useful to short sellers who want to limit their potential losses?
A)Limit order
B)Discretionary order
C)Limit-loss order
D)Stop-buy order
E)None of the above

Question

Quizplus · Accepted Answer

A stop-buy order is used by short sellers to limit potential losses by buying back the stock if it rises to a certain price, thus preventing further losses.

Which of the Following Orders Is Most Useful to Short