SIE practice questioneasyOrder Types
Which type of order instructs a broker to buy a security only if it can be purchased at a specified price or lower?
- AMarket order
- BStop order
- CLimit order✓ Correct answer
- DGood-till-canceled order
Explanation
Why C — Limit order
A limit order to buy is executed only at the limit price or lower, giving investors price control. Market orders execute at the current price, stop orders trigger at a price, and good-till-canceled refers to duration, not price.
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