When purchasing bonds, individual investors can use a ________ to specify the maximum price they are willing to pay for a bond.

Question

Quizplus · Accepted Answer

A limit order allows the investor to set the maximum price they are willing to pay for a bond. This ensures that the investor does not overpay for the bond and can potentially get a better deal if the bond's price falls to their specified limit. Market orders, stop orders, and price orders do not provide this level of control over the purchase price of a bond.

When Purchasing Bonds, Individual Investors Can Use a ________ to Specify