On March 15, Jacqueline placed a limit order, GTC, to buy 200 shares of CAKE at $40 a share. CAKE sold between $40.50 and $44.00 on that day. Over the following two months the stock price continued to rise and Jacqueline forgot about the order. After the markets closed on June 30, some bad news concerning CAKE was released. The stock opened on July 1 at a price of $32.00 a share. Which one of the following statements is correct concerning Marcos' order?

Question

Quizplus · Accepted Answer

A GTC (Good-Till-Cancelled) order remains active until it is executed or cancelled by the investor. Since the stock price fell to $32.00 on July 1, which is below the limit price of $40.00, the order would be executed at the market opening price of $32.00.

On March 15, Jacqueline Placed a Limit Order, GTC, to Buy