SIE practice questioneasyOrder Types in Accounts
A customer in a cash account places a market order to buy shares. What does a market order guarantee?
- AExecution at the day's closing price
- BA specific purchase price
- CThe lowest possible commission
- DExecution of the order✓ Correct answer
Explanation
Why D — Execution of the order
A market order guarantees execution (the shares will be bought), though not the price. B is incorrect—market orders don't guarantee price. C and D are not guaranteed with a market order.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Trading & Settlement questions
- In a margin account, what happens if equity falls below the maintenance requirement?
- Which federal regulation sets the initial margin requirement for purchasing securities on margin?
- A customer wants to sell shares short. Which account type is REQUIRED?
- In a margin account, what is the minimum maintenance margin requirement for equity securities according to FINRA?