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Which of the following is incorrect with respect to limit orders? a. They can be used only to buy stock. b. If the current quote does not meet the price cited in the limit order, the trade is not executed. c. The advantage of the limit order is that the investor makes the trade at the desired price. d. The disadvantage of the limit order is that the trade might not be executed at all.

Which of the following is incorrect with respect to limit orders? a. They can be used only to buy stock. b. If the current quote does not meet the price cited in the limit order, the trade is not executed. c. The advantage of the limit order is that the investor makes the trade at the desired price. d. The disadvantage of the limit order is that the trade might not be executed at all.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Which of the following is incorrect with respect to limit orders? a. They can be used only to buy stock. b. If the current quote does not meet the price cited in the limit order, the trade is not executed. c. The advantage of the limit order is that the investor makes the trade at the desired price. Od. The disadvantage of the limit order is that the trade might not be executed at all.
Transcribed Image Text:Which of the following is incorrect with respect to limit orders? a. They can be used only to buy stock. b. If the current quote does not meet the price cited in the limit order, the trade is not executed. c. The advantage of the limit order is that the investor makes the trade at the desired price. Od. The disadvantage of the limit order is that the trade might not be executed at all.
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