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If the quotation is a single word or a sentence fragment, place the terminal punctuation outside the closing quotation mark. When quoting a full sentence, the end of which coincides with the end of the sentence containing it, place terminal punctuation inside the closing quotation mark. Miller wanted, he said, "to create something timeless".
The problem here is not the removal of a quote from its original context per se (as all quotes are), but to the quoter's decision to exclude from the excerpt certain nearby phrases or sentences (which become "context" by virtue of the exclusion) that serve to clarify the intentions behind the selected words.
For example, "Stop!" has the punctuation inside the quotation marks because the word "stop" is said with emphasis. However, when using "scare quotes", the comma goes outside. Other examples: Arthur said the situation was "deplorable". (The full stop (period) is not part of the quotation.)
(The use of single quotation marks here rather than double quotation marks is standard linguistics usage when indicating a meaning of a previous word or phrase regardless of whether in the article as a whole double quotation marks or singlular quotation marks are used for top level quoting.
Alternatively they can be placed inside the quotation marks no matter where they appear in the quoted material; this is known as aesthetic punctuation or American style. Although known as American style and widely used in North America, the latter is also followed in British journalism and fiction writing. [2]
Many direct quotations can be minimized in length by providing an appropriate context in the surrounding text. A summary or paraphrase of a quotation is often better where the original wording could be improved. Consider minimizing the length of a quotation by paraphrasing, by working small portions of the quotation into the article text, or both.
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When using "scare quotes", however, the comma goes outside. Other examples: Arthur said the situation was "deplorable". (The full stop (period) is not part of the quotation.) Arthur said, "The situation is deplorable." (The full sentence is quoted; the period is part of the quotation.)