The sale that triggers a stop order. For example, suppose one makes a stop order to buy at the best available price after the price reaches $8 per share. The electing sale is a transaction on that security made for $8 a share. This sale activates the stop order. See also: Stop price.
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The round-lot transaction that activates an odd-lot or round-lot stop order. The first transaction after the electing sale is the effective sale for determining the price of the odd-lot order. An electing sale can take place only when the price of a security is at or through the price specified on the order. For example, if a customer enters an order to buy at 15 stop, the electing sale will be the first sale at which the stock trades at a price of $15 or more.
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.