You want to sell 1,000 shares of Colonel Electric. It was demoted after they cut their dividends.
The shares have been trading wildly between $15 and $25 a share. You don’t want to feel like a moron for having sold them at $15, when six weeks later they kiss $25. With tongue.
So what do you do? You put in a limit order.
That is, you put a limit of a minimum price of $25/share for Colonel Electric, such that those shares will simply sit in your account, maybe forever, until somebody out in the wild blue yonder of Stockland is willing to pay $25 or more for the shares where you have put a minimum price limit of $25/share in your order.
So here’s to hoping they sell, and don’t get further demoted. Sergeant Electric is just a place you don’t want to go.