If an investor places a market order, the stock will be sold if its price falls to the stipulated level. If an investor places a limit order, the stock will be bought if its price rises above the stipulated level.

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
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If an investor places a market order, the stock will be sold if its price falls to the stipulated level. If an investor places a limit order, the stock will be bought if its price rises above the stipulated level.

 

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