SIE practice questionmediumOrder Types
An investor wants to buy a stock if its price falls to $50. Which order should they place?
- ABuy stop order at $50
- BBuy limit order at $50✓ Correct answer
- CSell stop order at $50
- DSell limit order at $50
Explanation
Why B — Buy limit order at $50
A buy limit order executes at the limit price or lower. Buy stop is for initiating buys above market; sell orders are for liquidating, not buying.
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