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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
An executed stop order. A stop order is an order to a broker to sell a security once a certain price is reached. Once the price is reached and the security is sold, the position is said to be stopped out. Usually this refers to the protection of the investor from further losses in a time of declining prices.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Having an order executed at a specified stop price. For example, suppose Union Pacific stock trades at $65 and an investor enters a stop order to sell 500 shares at $62. If the stock price subsequently falls and the order is executed at $62, the customer is stopped out.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.