SIE practice questionmediumOrder Types
A customer places a sell limit order at $60. The stock is currently trading at $55. When will the order be executed?
- AOnly if the price falls below $55
- BOnly if the price rises to $60 or higher✓ Correct answer
- CImmediately at the current market price
- DAt any price
Explanation
Why B — Only if the price rises to $60 or higher
A sell limit order sets a minimum price at which the order can be executed. It will not fill immediately, since the stock is trading below the limit price.
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