Trading & MarketsQuestion 82 of 125
A customer places a limit order to buy 100 shares at $25. This order:
a.Will be executed only at $25 or lower
b.Will be executed only at $25 or higher
c.Guarantees immediate execution at the market
d.Becomes a market order once the stock reaches $25
Explanation
A buy limit order sets the maximum price the buyer is willing to pay, so it executes only at the limit price or lower. It provides price protection but no guarantee of execution; if the stock never trades at or below the limit, the order goes unfilled.
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