An order that specifies a maximum price to pay if buying is a
A) stop order
B) market order
C) limit order
D) all or none order
E) none of the above

Question

Quizplus · Accepted Answer

A limit order specifies a maximum price to pay if buying or a minimum price to receive if selling. Therefore, choice C is the correct option. A stop order is an order to buy or sell when the price reaches a specified level, a market order instructs the broker to buy or sell the stock at the current market price, and an all or none order is an order that must be executed in full or not at all.

An Order That Specifies a Maximum Price to Pay If