The maximum buying price or the minimum selling price specified by the investor is called a:
A) stop-loss order
B) market order
C) short sale
D) limit order

Question

Quizplus · Accepted Answer

The maximum buying price or the minimum selling price specified by the investor is called a limit order. A stop-loss order is an order to sell a security at a specified price in order to limit a loss. A market order is an order to buy or sell a security at the current market price. Short sale is a transaction in which an investor sells borrowed securities in anticipation of a price decline and is required to return an equal number of shares at some point in the future. Therefore, option D, limit orders, is the correct answer.

The Maximum Buying Price or the Minimum Selling Price Specified