Stop Order

Legal Definition and Related Resources of Stop Order

Meaning of Stop Order

An order issued by competent authority to prevent the doing of an act, such as the trading in the shares of a particular corporation in the stock exchange or the continuance of building operations without obtaining a building permit or complying with a work order.

Stop Order Alternative Definition

‘ In English Chancery Practice. An order to prevent a fund in court from being paid out or otherwise deal with without notice to a claimant. In Commercial Usage. An order to buy or sell on margins and close out at a set price. See under Gambling Contract.

Legal Definition of Stop Order

An order to buy at a price above or sell at a price below the current market. Stop buy orders are generally used to limit loss or protect unrealized profits on a short sale. Stop sell orders are generally used to protect unrealized profits or limit loss on a holding. A stop order becomes a market order when the stock sells at or beyond the specified price and, thus, may not necessarily be executed at that price.

Related Entries of Stop Order in the Encyclopedia of Law Project

Browse or run a search for Stop Order in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.

Stop Order in Historical Law

You might be interested in the historical meaning of this term. Browse or search for Stop Order in Historical Law in the Encyclopedia of Law.

Legal Abbreviations and Acronyms

Search for legal acronyms and/or abbreviations containing Stop Order in the Legal Abbreviations and Acronyms Dictionary.

Related Legal Terms

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Related topics Stop Order in the World Encyclopedia of Law


This definition of Stop Order is based on the The Cyclopedic Law Dictionary . This entry needs to be proofread.

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