Question : Case Study 78

GHI Ltd. is a conglomerate that has recently traded its shares on a stock exchange. The company's management is reviewing the process of placing an order.

Question : 

When an investor places an order to buy shares at a specific price, what type of order is this?

Option 1: Market order
 

Option 2: Limit order
 

Option 3: Stop order

 

Option 4: Day order


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Limit order


Solution : The correct answer is (b) Limit order

When an investor places an order to buy shares at a specific price, it is called a "limit order." In a limit order, the investor specifies the maximum price they are willing to pay for a buy order or the minimum price they are willing to accept for a sell order. The order will only be executed if the market price reaches or matches the specified limit price. If the market price does not reach the limit price during the trading day, the order remains open until it is either executed or canceled by the investor.

Related Questions

UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #9 in India by QS University Rankings 2023
Jindal Global Law School Admi...
Apply
Ranked #1 Law School in India & South Asia by QS- World University Rankings | Merit cum means scholarships
Symbiosis Law School Pune Adm...
Apply
NAAC A++ Accredited | Highest CTC 52 LPA
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC
Woxsen University | Law Admis...
Apply
BBA -LLB (Hons.) & BA -LLB (Hons.) @ Woxsen University. BCI approved | Industry Endorsed Curriculum
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books