Teletek: Big Earnings About To Be Posted Message Board

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From: David Luckie	5/13/1996 2:37:00 PM
	of 1014

Howard, A "Stop Order" is an order to sell a security when its price falls to a specified level. There are no guarantees that you will receive that price, however. Your broker is bound to make a good faith effort to execute your order at your stop limit, and in most cases the orderly progression of market makers' bid/ask allows step-wise reductions facilitate this. I'm sure there have been many situations where the transaction failed to take place, however. Indeed, setting stops too close to the purchase price is one sure-fire way to make sure that your commission costs increase, and this is especially true with the volatile stocks in the tech sector. A "Limit Order" is an order to buy a security at or below a specified price or to sell a stock at or above a specified price. Note the difference here--you're "buying at or below" and "selling at or above" the Limit Price.