A limit order to buy:
A)guarantees the quantity purchased but not the price.
B)guarantees both the purchase price and the order fulfillment.
C)is executed only if the purchase price is less than the limit amount.
D)guarantees the purchase price but not the order execution.
E)will be executed either at the limit price or at the end-of-day price.

Question

Quizplus · Accepted Answer

A limit order to buy guarantees the purchase price, but not the order execution. The order will only be executed if the market price reaches the specified limit price or lower. If the price does not reach the limit price, the order will not be executed. Therefore, it is important to set the limit price at a level that is appropriate for the desired trade execution.

A Limit Order to Buy