Sally has researched GLE and wants to pay no more than $50 for the stock. Currently, GLE is trading in the market for $54. Sally would be best served to
A) buy using a limit order.
B) buy using a market order.
C) use the bid-ask spread to her advantage.
D) None of the options.

Question

Quizplus · Accepted Answer

A limit order allows Sally to specify the maximum price she is willing to pay for GLE stock, which is $50 in this case. This ensures she does not pay more than her desired price.

Sally Has Researched GLE and Wants to Pay No More