When an investor sets a maximum price a broker can spend per share, the investor is issuing a(n)
A) market order.
B) price option.
C) limit order.
D) matched order.
E) open order.

Question

Quizplus · Accepted Answer

When an investor sets a maximum price a broker can spend per share, they are placing a limit order. A market order is an instruction to buy or sell securities immediately at the best available current price while a price option is not a common term in stock trading. A matched order is when a buy and sell order match in price and quantity, resulting in a trade. An open order is an order that has been placed but not yet executed.

When an Investor Sets a Maximum Price a Broker Can