An order to buy shares of stock at a stated price or less is called a________ order.
A)limit
B)stop
C)market
D)short
E)bid

Question

Quizplus · Accepted Answer

A limit order is an instruction to buy shares of stock at a specific price or lower. It allows investors to control the price at which they buy or sell a stock, providing a degree of predictability and potentially avoiding unexpected costs. This is in contrast to a market order, which simply buys or sells shares at the current market price. A stop order, on the other hand, instructs a broker to buy or sell shares once they reach a certain price, often used as a way to limit losses or protect profits. A short order is a type of trade used to profit from a declining market, while a bid is an offer to buy shares at a certain price.

An Order to Buy Shares of Stock at a Stated