Aqib thinks one of the stocks he owns might be dropping, but he's not confident enough to sell it yet. He calls his broker and requests that she sell the stock if it drops more than 10 percent during the day. This can be best described as a ________ order.
A) market
B) limit
C) speculation
D) discretionary
E) discount

Question

Quizplus · Accepted Answer

A limit order allows an investor to set a specific price at which they would like to buy or sell a stock. In this case, Aqib is setting a condition for the sale based on the stock's price dropping more than 10 percent, which aligns with the concept of a limit order.

Aqib Thinks One of the Stocks He Owns Might Be