CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

A ______ order is most likely to be executed sooner than the other types of orders.

A. limit buy
B. limit sell
C. market
D. stop
E. day
Correct Answer: C

Limit order: A condition placed on a transaction executed through a stockbroker to assure that securities will be sold only if a specified minimum price is received, or purchased only if the price to be paid is no more than a given maximum.
Stop order: A mechanism for locking in gains or limiting losses on securities transactions. The investor is not assured of paying or receiving a particular price but rather agrees to accept the price prevailing when the broker is able to execute the order after prices have reached some predetermined figure.

User Contributed Comments 2

User Comment
kalps Market order is immediate at the prevailing price
surjoy Brilliant work!
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