SIE practice questionmediumOrder Types
An investor wants to buy shares but only if the price falls to $25 or below. Which order type should be used?
- ASell limit order
- BBuy stop order
- CSell stop order
- DBuy limit order✓ Correct answer
Explanation
Why D — Buy limit order
A buy limit order gets executed at the specified price or lower, allowing investors to control their entry point. Stop orders are used for triggering at higher prices, not lower.
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