A request that a stock be bought or sold at a specified price is called a ____________ order.
A) market
B) limit
C) stop
D) round
E) discretionary

Question

Quizplus · Accepted Answer

A limit order is a request to buy or sell a stock at a specified price or better. It is different from a market order, which is a request to buy or sell a stock at the best available price at that moment. A stop order is a request to buy or sell a stock when it reaches a certain price, but it is typically used as a way to limit losses rather than guarantee a specific purchase or sale price. A round order is not a type of stock order. A discretionary order is a request to a broker to make a trade on your behalf, but with the broker having some discretion as to the timing and price of the trade.

A Request That a Stock Be Bought or Sold at a Specified