单选题

A stop-buy order is most likely placed when a trader:

A、 thinks that the stock is overvalued.
B、 wants to limit the loss on a long position.
C、 wants to limit the loss on a short position.

【正确答案】 C

【答案解析】

C is correct. Investors who have entered into a short sale will incur losses if the stock begins to increase in value. A stop-buy order helps limit the loss on a short position because it becomes valid when the stock price rises above the specified stop price.