A market order and a limit order are orders to ____,while a stop order is an order to ____.

Question

Quizplus · Accepted Answer

A market order is an order to buy or sell at the current market price, regardless of what that price is. A limit order is an order to buy or sell at a specific price or better. A stop order is an order to sell (or buy) a security once the price of the security has reached a certain level, in order to limit an investor's losses or protect an investor's gains. Therefore, a market order and a limit order are both orders to buy or sell, whereas a stop order is an order to sell (or buy). Choice C correctly identifies the two types of orders as buying or selling, and the stop order as an order to sell.

A Market Order and a Limit Order Are Orders to ____,While