EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Question
Chapter 3, Problem 4PS
Summary Introduction
To determine:
Which option satisifies the characteristic of the market order.
Introduction:
Order refers to the instruction made by the investor to the brokerage firm or broker to buy or sell a particular stock. The order is generally made through online trading platform or phone. An investor has different option through which he can place restrictions on his order such as market order and limit order.
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A market order has:a. Price uncertainty but not execution uncertainty.b. Both price uncertainty and execution uncertainty.c. Execution uncertainty but not price uncertainty.
Discuss the differences between a market order, limit order, and stop order.
What are the differences between market ordersand limit orders?
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