SIE practice questionmediumOrder Types - Limit Orders
A client wants to buy stock, but only if the price does not exceed $25. What order should they use?
- AStop order
- BMarket order
- CBuy limit order✓ Correct answer
- DSell limit order
Explanation
Why C — Buy limit order
A buy limit order specifies a maximum price. Market orders execute at any price; stop orders are for triggering; sell limit orders are for selling above a price.
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