Second hand does not stop.
All Seiko watches with 7S26 movement are non-hacking movements, which means that the second hand does not stop when you pull out the crown to set the time.
However, you can try the below steps to stop the second hand:
1. Pull the crown to the second position (when you can move the hands) and set your time.
2. To stop or even reverse the second hand, slowly move the minute hand back a few minutes. When you stop do not release the backwards pressure on the crown. You should see the second hand stopped or moving slowly backwards at this time. If it is moving backwards ease up a bit on the crown until the hand stops. On some watches the crown may have enough resistance that you can let go and the second hand will remain still. Make sure it is not moving in reverse.
3. At this point the minute hand should be a few minutes early. By this I mean if the current time is 7:30, the minute hand should be on or around 7:28. Wait for the seconds on the other clock/watch to match your watch. As soon as this happens begin to advance the minute hand forward to the correct minute. This should resume the second hand and in effect set your watch to the correct minute.
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