A limit order is an order to a broker to buy a specific stock within a specific timeline. This allows the investor to confirm purchases are made by the end of the specified trading day.

Question

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A limit order is an order to buy or sell a specific stock at a specific price or better. The order will only be executed when the market price of the stock reaches the specified price. The timeline for execution is not the defining characteristic of a limit order.

A Limit Order Is an Order to a Broker to Buy