Ashley Riley wants to buy the stock of XYZ Company at a specified price.What type of order should she place?

Question

Quizplus · Accepted Answer

Ashley Riley should place a limit order because it allows her to specify the price at which she wants to buy the stock. This ensures that she will not pay more than she is willing to for the stock. A market order would execute immediately at the current market price, which might not be the desired price for Ashley. Stop and discretionary orders are not applicable for this scenario. Common order is not a valid order type.

Ashley Riley Wants to Buy the Stock of XYZ Company