Unlike Day Orders, a Good-Til-Cancelled (GTC) Order Is an Order

question 88

Multiple Choice

Unlike day orders, a good-til-cancelled (GTC) order is an order to buy or sell a security at a specific or limit price that lasts until the order is completed or cancelled. Which of the following are true?

• A)A GTC order will not be executed until the limit price has been reached, regardless of how many days or weeks it might take.
• B)Investors often use GTC orders to set a limit price that is far away from the current market price.
• C)Some brokerage firms may limit the time a GTC order can remain in effect and may charge more for executing this type of order.
• D)All of the above are true

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Definitions:

Level of Satisfaction

The degree to which needs, desires, or expectations are fulfilled or gratified.

Marginal Utility

The change in satisfaction or utility received by consuming one additional unit of a good or service.

Limited Usefulness

Refers to the notion that a tool, resource, or piece of information is only beneficial or applicable in certain situations or to a certain extent.

Optimal Quantity

The amount of a good or service that maximizes the net benefit to an individual or society, often considering factors like cost and utility.