Garret wants to buy shares of an iron manufacturing company, but he does not want to pay a high price for them. He asks his securities broker to only buy shares that come within the price of $300 and $400. In this scenario, Garret places a _____ with his broker.

Question

Quizplus · Accepted Answer

Garret is placing a limit order with his broker, as he is setting a specific limit on the price he is willing to pay for the shares. A market order would have Garret buy the shares at the current market price, regardless of the price range he wants to stay within. A sell stop order and good-til-canceled order are also different types of orders that do not fit Garret's request for a specific price range.

Garret Wants to Buy Shares of an Iron Manufacturing Company