Mr. King has researched a small company whose stock is selling at $7.50. He wants to buy 1,000 shares but thinks that he might get the stock at $7.25. To try to buy the stock at the lower price, he should place a:
A) sell stop order at $7.25.
B) buy stop order at $7.25.
C) sell limit order at $7.25.
D) buy limit order at $7.25.

Question

Quizplus · Accepted Answer

A buy limit order is used to purchase stock at or below a specified price, in this case, $7.25.

Mr King Has Researched a Small Company Whose Stock Is