SIE practice questioneasyTrade Execution
A customer places a sell limit order for 100 shares of ABC at $25. Which of the following accurately describes how this order will be handled?
- AIt will be executed only at $25 or higher.✓ Correct answer
- BIt will be executed only at $25 or lower.
- CIt will be executed at the next available price.
- DIt will only be executed if the stock falls below $25.
Explanation
Why A — It will be executed only at $25 or higher.
A sell limit order is filled at the specified price or higher. A buy limit order is filled at the price or lower. The other options describe different order types or are incorrect.
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