Which of the Following Is Not One of the Differences

question 16

Multiple Choice

Which of the following is not one of the differences between limit and market orders?

• A)Limit orders define the price at which the shares will be purchased while market orders are independent of the final price.
• B)Limit orders are usually made by major institutions while retail investors make market orders.
• C)The amount of shares that can be purchased with a limit order is pre-specified by the underwriter, while market orders can be for any number of shares.
• D)Limit orders are expressions of interest while market orders are for fixed amounts.

---

Definitions:

Tax Benefit

A deduction, credit, or exemption that reduces taxable income or tax liability, provided to incentivize certain activities or investments.

Operating Lease

A lease agreement for the use of an asset without ownership, typically with shorter terms than a finance lease.

Lessor

An entity or individual who leases or rents out an asset to another, known as the lessee, under a lease agreement.

Lease Period

The specified duration for which a lease agreement is effective, giving the lessee the right to use an asset.