Which One of the Following Statements Regarding Orders Is False

question 1

Multiple Choice

Which one of the following statements regarding orders is false?

• A) A market order is simply an order to buy or sell a stock immediately at the prevailing market price.
• B) A limit-sell order is where investors specify prices at which they are willing to sell a security.
• C) If stock ABC is selling at $50, a limit-buy order may instruct the broker to buy the stock if and when the share price falls below $45.
• D) A market order is an order to buy or sell a stock on a specific exchange (market).

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Definitions:

Non-Risky Asset

A financial asset with a guaranteed or highly predictable return rate, such as government bonds.

Expected Return

The anticipated gain or loss for an investment over a given period, often expressed as a percentage.

Standard Deviation

A gauge for the degree of spread or discrepancy in a series of data points.

Real Rate of Return

The rate of return on an investment after adjusting for inflation, representing the actual growth in purchasing power.