Which of the Following Best Describes a Limit Order

question 49

Multiple Choice

Which of the following best describes a limit order?

• A)An order to buy or sell shares at the prevailing market price
• B)An order to buy shares directly from the issuing company
• C)An order to buy or sell shares at a specified price
• D)An order to buy or sell shares off- market

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Definitions:

Moral Hazard

A situation in which one party is more likely to take risks because they do not have to bear the full consequences of their actions, often seen in insurance and finance.

Risk Aversion

A preference for lower risk investments, often reflecting an investor's reluctance to accept a high likelihood of losses.

Federal Tax Bracket

Federal tax brackets are ranges of income to which different tax rates apply, forming part of the U.S. progressive tax system.

After-tax Yield

The return on an investment after the effects of income taxes are taken into account, reflecting the actual gain to the investor.