Question

kate calls her broker to purchase 200 shares of ibm. the broker tells her that the price of a share is currently $90. kate decides that she isnt willing to pay more than $88. what type of order will she put in? a. stop limit b. stop loss c. market d. limit

Explanation:

A limit order allows an investor to set a maximum price to pay when buying (or a minimum price to receive when selling). Kate has a maximum price she's willing to pay for the shares, so a limit order is appropriate. A stop - loss order is mainly for preventing losses on a long - held position. A stop - limit order combines elements of both stop and limit orders with more complex triggering conditions. A market order is to buy or sell at the current market price.

Answer:

D. Limit