Ashley Riley wants to buy the stock of XYZ Company at a specified price. What type of order should she place?

Question

Quizplus · Accepted Answer

A limit order allows Ashley to specify the maximum price she is willing to pay for the stock, ensuring that she does not overpay for the stock. A market order would execute at the current market price, which may be higher than Ashley's desired price. A stop order is used to protect against losses by executing a trade once the stock reaches a certain price, and a discretionary order gives the broker the discretion to execute a trade without consulting the client. A common order is not a type of order.

Ashley Riley Wants to Buy the Stock of XYZ Company