Series 10 Exam Question 49: Answer and Explanation

Question: 49

An investor enters an order to buy 1,000 ABC MOC. Which of the following is FALSE?

• A. The order will be executed as close to the closing price as possible.
• B. The order will be canceled if trading on the exchange is halted.
• C. The order will be canceled if trading in ABC is halted.
• D. It may be executed at any price within the last four minutes of the trading day because it is a market order.

Correct Answer: D

Explanation:

All of the answers are correct with regard to a market on close order except that it must be executed on the closing price or as close to the closing trade as possible; four minutes is too far away from the close to be reasonable.