SIE Exam Question 222: Answer and Explanation

Question: 222

All of the following are true of market orders except that

• A. they will be executed at the best possible price available.
• B. they guarantee a maximum or minimum executed price for the order.
• C. they can either be a buy or sell order.
• D. they guarantee that the order will be executed immediately upon being introduced to the market.

Correct Answer: B

Explanation:

Market orders do NOT guarantee a maximum or minimum executed price and in fact do not guarantee any specific price at all. Market orders can either be for a buy or sell order and are guaranteed to be filled immediately upon being introduced to the market and at the best possible price available.