In the case of a Sell on Stop order, when the market reaches or falls below the Stop Price a market sell order will be triggered. For Buy on Stop orders, the stop price triggers the creation of a market buy order when the market price of the stock rises to or above the stop price.
In addition if a Stop Limit is also indicated on stop order, the resultant order will be a corresponding limit order as opposed to a market order.
REP. DINGELL ISSUES STATEMENT ON ENERGY SPECULATION: IS GREATER REGULATION NEEDED TO STOP PRICE MANIPULATION
Dec 12, 2007; The House Energy & Commerce Committee issued the following statement from a full committee hearing: SUBCOMMITTEE ON OVERSIGHT AND...