SIE practice questioneasyOrder Types
A client instructs her registered representative to buy 100 shares of XYZ at the best available price as soon as possible. Which order type will the representative enter?
- ALimit order
- BMarket order✓ Correct answer
- CStop order
- DStop-limit order
Explanation
Why B — Market order
A market order is an instruction to buy or sell a security immediately at the best available price. Limit orders specify a price, while stop and stop-limit orders are conditional and not used for immediate execution.
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