SIE Exam Question 372: Answer and Explanation

Question: 372

What type of order should Martin enter if his objective is to buy 500 shares of Cisco stock as soon as possible at the best price available?

• A. Limit
• B. Market
• C. Trailing stop
• D. Good-till-cancelled

Correct Answer: B

Explanation:

B - A market order gives the broker instructions to buy or sell a specified quantity of securities immediately, as soon as the order reaches the market. A full execution of the order is assured but the execution price is unknown.