To determine: The differences among a stop-loss order, a limit sell order and a market order.
Introduction: The stop-loss order, a limit sell order, and a market order are utilized by investors for different purposes.
Explanation of Solution
Stop-loss Order-It is basically used to pursue a broker to buy or sell stock after it reaches a certain price. Stop-loss Order is used by the investors to limit their loss on a certain stock position.
Limit-sell Order-It is basically used to pursue a broker to sell stock at a certain price. It is used by investors to sell stock at a better price.
Market-Order-It is defined as an unrestricted order as there are no restrictions in the buy or sell which will be included in the order. In a market order, the broker is asked to buy or sell stock at the price available in the market.
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