Which of the following is characteristic of a limit order?
A)The order that provides the quickest way to have an order filled.
B)Buy orders are filled at the lowest available price.
C)Stock is purchased at the current market price.
D)The order is executed as soon as the specified price is reached.
E)Securities are always bought on margin.

Question

Quizplus · Accepted Answer

A limit order is an order to buy or sell a security at a specific price or better. The order is executed when the market price reaches the specified price or better. This means that the order is not executed immediately but rather once the specified price is met. Therefore, option D is characteristic of a limit order.

Which of the Following Is Characteristic of a Limit Order