Suri owns 100 shares in OPQ, an oil company. After looking at the firm's latest annual report, she feels good about the performance of the company, so she tells her broker to buy 100 more shares but to pay no more than $33 a share. What did Suri just issue her broker?

Question

Quizplus · Accepted Answer

Suri just issued a limit order because she specified the maximum price she is willing to pay for the shares. This is different from a market order where the investor buys at the current market price without setting any price limit. A stop loss order is used to minimize losses by selling shares if the price falls below a certain level.

Suri Owns 100 Shares in OPQ, an Oil Company