SIE practice questioneasyMarket Orders
A customer places a market order to buy 100 shares of XYZ stock. Which of the following best describes what will happen?
- AThe order will be executed only at a price the customer specifies
- BThe order will be executed only if the stock reaches a specific price
- CThe order will be executed immediately at the best available price✓ Correct answer
- DThe order will be held until the end of the trading day
Explanation
Why C — The order will be executed immediately at the best available price
A market order is an instruction to buy or sell immediately at the best available price. It guarantees execution but not price. A limit order specifies a maximum or minimum price, a stop order triggers at a specified price, and an order held beyond the current trading day would be a different time-in-force instruction.
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