Trading & MarketsQuestion 81 of 125
A market order to buy is an instruction to:
a.Buy only at a specified price or lower
b.Buy only when the stock trades through a stop price
c.Buy immediately at the best available current price
d.Buy at the closing price only
Explanation
A market order is executed promptly at the best available price when it reaches the market, prioritizing speed of execution over price. It provides no price protection, so in fast-moving or thin markets the execution price may differ from the last quote.
Practice all 125 questions free — no signup required.
Related questions on this topic
- A customer places a limit order to buy 100 shares at $25. This order:
- A sell stop order becomes a market order to sell when the stock:
- A sell stop limit order differs from a sell stop order because, once triggered, the stop limit order:
- In a securities quote, the bid and ask represent:
- Regular-way settlement for most corporate stocks and bonds currently occurs on:
- The ex-dividend date is significant because an investor who buys the stock on or after that date:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against FINRA Series 7 General Securities Representative Exam · How we review