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Use of limit orders for selling stock

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Can you please explain how and why you would use a limit order to sell a stock.

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Solution Summary

The referenced solution provides a paragraph each to explain three possible reasons for using a limit order.

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There could be several reasons why an investor would place a limit order on a stock sale.

1. There is protection on the down side. Let's say you bought a somewhat risky stock some time ago and it popped up in value. You considered selling it yesterday at a nice profit, but you decided to wait because it might go higher. You are worried about the volatility in the market so you place a limit order to sell the stock at 2 ...

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