An Instruction to a Securities Agent to Purchase a Stock

question 7

Multiple Choice

An instruction to a securities agent to purchase a stock as long as its price does not exceed a specified level is a ________.

• A) short sell
• B) market order
• C) limit order
• D) stop loss order

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Definitions:

Taxable Income

The portion of an individual's or corporation's income used as the basis for calculating the amount of tax owed to the government.

Standard Deduction

A preset tax deduction amount that reduces taxable income, not requiring itemization.

Joint Return

A combined tax return filed by married couples who choose to report their incomes, deductions, and credits on the same return.

Taxable Income

The amount of an individual's or company's income used to determine how much tax is owed, calculated as gross income minus deductions and exemptions.