CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

An investor wants to buy a stock which is trading at $22 now. If the investor doesn't want to pay more than $20 for the stock, the investor can place a ______.
A. limit order to buy the stock at $20 or below
B. stop-buy order to buy the stock at $20
C. stop-sell order to buy the stock at $20
Explanation: By entering a limit order rather than a market order, the investor will not buy the stock at a higher price, but he may get fewer shares than he wants or not get the stock at all.

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