SIE practice questionmediumOrder Types
An investor places a not-held order. What discretion does the broker have?
- AThe broker can select the security to buy.
- BThe broker decides the best time and price for execution that day.✓ Correct answer
- CThe broker can hold the order indefinitely.
- DThe broker can execute the order at any time, including future days.
Explanation
Why B — The broker decides the best time and price for execution that day.
A not-held order allows time and price discretion for the broker on that trading day only. Security selection is not permitted without written authorization, and orders can't be held past day-of-entry without being GTC.
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