Suppose the shares of the Chickadee Corporation traded seven times in the following sequence one day last week: 46, 45.88, 45.75, 45.50, 45.63, 46, 46.13. In this case, a limit order to sell at 46 would have been executed
A) between 46 and 46.13, whereas a market order to sell could have been executed anywhere between 45.50 and 46.13.
B) anywhere between 45.50 and 46.13, whereas a market order to sell would have been executed only at 46.
C) only at 46, whereas a market order to sell would have been executed at 46.13.
D) only at 46.13, and a market order to sell would have been executed between 46 and 46.13.

Question

Quizplus · Accepted Answer

A limit order to sell at 46 would have been executed when the price reached 46 or higher, which happened three times in the sequence (46, 46, 46.13). A market order to sell would have been executed at the next available price after the order was placed, which could have been anywhere in the range of prices for that day (45.50 to 46.13).

Suppose the Shares of the Chickadee Corporation Traded Seven Times