Mr. Ng has researched a small company, whose stock is selling at $7.65 He wants to buy 1,000 shares but thinks that he might get the stock at $7.40. To try to buy the stock at the lower price, he should place a:
A) sell stop order at $7.40..
B) buy stop order at $7.40.
C) sell limit order at $7.40.
D) buy limit order at $7.40.

Question

Quizplus · Accepted Answer

A buy limit order allows an investor to purchase a stock at a specified price or lower, which matches Mr. Ng's intention to buy the stock at $7.40 or less.

Mr Ng Has Researched a Small Company, Whose Stock Is