A market order is transacted at the:
A) lowest price of the day.
B) best price when the order is entered.
C) limit price.
D) price quoted by the broker.
E) average price of the stock on the transaction day.

Question

Quizplus · Accepted Answer

A market order is executed at the best available price at the time the order is entered, regardless of the price at which the stock was trading earlier in the day or the limit price set by the investor. The price quoted by the broker is also not necessarily the price at which the market order will be executed. The average price of the stock on the transaction day does not factor into the execution of a market order.

A Market Order Is Transacted at The