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Stop Payment Order. Revocation of a check; a notice made by a depositor to his or her bank directing the bank to refuse payment on a specific check drawn by the depositor. An individual who writes a check can revoke it unless it has been certified, accepted, or paid. If a bank pays a check after a timely stop payment order by the depositor, the bank is usually liable to the depositor for the amount paid.
3) Stop orders: Damage control OR donât let this stock get away. A stop order is an order to buy or sell once the price of a stock reaches a specified price. A sell stop order is often referred to as a stop-loss order. In this context, you own a stock and want to try to limit the downside risk.