An order that specifies the highest buy or lowest sell price is a
A) limit order.
B) short sale.
C) market order.
D) margin call.
E) stop loss.

Question

Quizplus · Accepted Answer

A limit order specifies a maximum price a buyer is willing to pay or minimum price a seller is willing to accept for a security. It is different from a market order, where the buyer or seller agrees to execute a trade at the best available price in the market. Short sale, margin call, and stop loss are not applicable to defining the highest buy or lowest sell price.

An Order That Specifies the Highest Buy or Lowest Sell