For a limit order to buy 200 shares at 50,
A) if the price is not achieved in two hours, the order is cancelled.
B) all must be purchased at 50 or the order is cancelled.
C) it will be transacted by an-odd lot dealer.
D) 100 may be purchased at 50; 100 may be entered in the limit book.

Question

Quizplus · Accepted Answer

A limit order allows for partial execution, so 100 shares may be purchased at 50, and the remaining 100 may be entered in the limit book for potential future execution. Option A is incorrect as the order may remain active until cancelled or executed. Option B is incorrect as partial execution is allowed. Option C is incorrect as odd lot dealers deal with orders that are not in round lots or multiples of 100 shares.

For a Limit Order to Buy 200 Shares at 50