You placed an order to purchase stock where you specified the maximum price you were willing to pay. This type of order is known as a ________.
A) maximum order
B) limit order
C) floor order
D) market order

Question

Quizplus · Accepted Answer

A limit order is an order to buy or sell a stock at a specific price or better. In the case given, the maximum price is specified, which means it is a limit order. Option A is not a common term used in stock trading, Option C refers to an order placed to buy stock at the current market price or lower, and Option D refers to an order to buy or sell at the current market price.

You Placed an Order to Purchase Stock Where You Specified