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 under normal market conditions, but it does not guarantee a specific purchase price, the day's closing price, or the lowest possible commission.
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