Garret wants to buy shares of an iron manufacturing company, but he does not want to pay a high price for them. He asks his securities broker to only buy shares that come within the price of $300 and $400. In this scenario, Garret places a _____ with his broker.

Question

Quizplus · Accepted Answer

A limit order is an order to buy or sell a stock at a specific price or better. In this case, Garret is specifying a price range ($300 to $400) for purchasing shares, which is characteristic of a limit order.

Garret Wants to Buy Shares of an Iron Manufacturing Company