A __________ order sets the price at which an investor is willing to buy or sell and assures the investor that he/she will pay no more or receive no less than the agreed upon price.

Question

Quizplus · Accepted Answer

A limit order specifies the maximum price an investor is willing to pay for a buy order or the minimum price an investor is willing to receive for a sell order. This ensures that the investor gets the price they want, or better, but it does not guarantee execution of the order. It is a popular choice for investors who want to have more control over the execution price. The other options in the question (B) Stop, (C) Good 'til canceled, and (D) Market, are not specific to setting a price at which an investor is willing to buy or sell.

A __________ Order Sets the Price at Which an Investor