Business and Personal Finance Dictionary

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• STOP-LIMIT ORDER
  
  A stop-limit is a combination order that instructs your broker to buy or sell a stock once its price hits a certain target, known as the stop price, but not to pay more for the stock, or sell it for less, than a specific amount, known as the limit price. For example, if you give an order to buy at "40 stop 43 limit," you might end up spending anywhere from $40 to $43 a share to buy a stock, but not more than $43. A stop-limit order can protect you from a rapid run-up in price-such as those that sometimes occur when there's an initial public offering (IPO) in a hot stock-but you also run the risk that your order won't be executed because the stock's price leapfrogs your limit.
  
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