SIE practice questioneasyOrder Types
Which type of order would an investor use to buy a security ONLY if it falls to a specific price or lower?
- ABuy limit order✓ Correct answer
- BBuy stop order
- CSell stop order
- DSell limit order
Explanation
Why A — Buy limit order
A buy limit order is executed at the specified price or lower. Buy stop orders are triggered above the market; sell stop and sell limit are not used to buy securities.
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