And this is why JavaScript is in such a mess and why old StackOverflow posts are a devs worst nightmare. JS changes so quickly these days with a new framework coming out every week and each one is claimed as the bees knees by it's advocates.
Gumbo is right to say a script tag can be referenced anywhere an inline element can but the choice to load an external JS file or include JS code within a tag is a decision made individually on each case. Yes the browser will stop to load JS when it parses and therefore you need to consider how this will affect page load speed and functionality. The current or as of a year ago, mid 2015 (bear in mind the popualar answer was in July 2009 and most devs won't ever read this as they look at answer no.1 and move on!!!) is that given mobile priority to page load speed requires a two request limit to the mobile/cell mast which under 3G gives you a 28k (2x 14kb(yes)) payload, you need to consider (as Google names it) 'paint to screen' of 28k and this should provide the user with enough page content/interactivity to ensure they're on the right page or on the right track, in that 28k. So a Jquery minified is currently 87.6lkb, just ain't gonna cut the mustard!
This is why most mobile page load currently sit for a couple of seconds before loading anything, and that's 4G! Don't do it. Page speed is king and users hit their back button before your JQuery file loads. Under 3G+ a 28k payload will load in <1sec so there is no reason why your page doesn't start loading in that time. Next time you hit a link on your phone, watch the little bar sit and wait while it goes through all the tags on the next page!
So structure your page not on where a 7 year old post on SO says to( it's not wrong just outdated), but where each piece of code is needed and make sure a user can use of he most important aspects of a page before you try to load 6 JS frameworks to implement clever parrallel scrolls and extensive data binding for your contact page.
BTW Google asks you to push JS to the bottom because they supply Google analytics code and this needs to be the very last thing to load.
Think before you code!
<script>
tags in FireBug you'll see that they get moved to the<head>
tag automatically. – Paigepaik