A ________ sets a minimum or maximum price before your stock trade is converted to a market order and sent to the stock exchange.
A)market order
B)limit order
C)stop order
D)day order

Question

Quizplus · Accepted Answer

A limit order sets a specific price (either minimum or maximum) at which you want to buy or sell a stock. The stock trade will only be executed if the stock price reaches this limit price or better. This is different from a market order, which executes at the current market price, and a stop order, which triggers a market order when the stock price reaches a certain level. A day order simply means that the limit order is only valid for that trading day.

A ________ Sets a Minimum or Maximum Price Before Your