SIE Exam Question 52: Answer and Explanation

Question: 52

An order to buy a stock at specific price or better is what type of order?

• A. Limit order
• B. Stop order
• C. Market order
• D. Stop limit order

Correct Answer: A

Explanation:

An order to buy or sell a stock at a specific price or better is a limit order. A market order is an order to buy or sell at the best available price at the time the order is placed. A stop is an order to buy or sell a stock when its market price reaches or drops below a specified price. A stop limit order is an order to buy or sell at a specific price or better once a given stop price has been hit.