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25.07.2022 - 02:42

True or false: A limit order is an order to sell stock at the market price when the price of the stock falls to a specified level.

Question:

True or false: A limit order is an order to sell stock at the market price when the price of the stock falls to a specified level.

Answers (1)

Roberta April 13, 2023 в 20:16

False. A limit order is an order to buy or sell a stock at a specific price or better. It allows an investor to specify the maximum price they are willing to pay to buy a stock or the minimum price they are willing to accept to sell a stock. When the market reaches the specified price, the order is executed. In contrast, an order to sell stock at the market price when the price falls to a specified level is a stop order.

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