The Primary Risk in Using a GTC Limit Sell Order

question 103

Multiple Choice

The primary risk in using a GTC limit sell order rather than a market order is that

• A) the market price may exceed the limit price when the order is placed.
• B) the limit order may not be executed.
• C) the limit order may be executed at a price above the market price.
• D) the limit order expires at the end of the day and may not be executed.

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Definitions:

1933 Securities Act

A United States federal law enacted to ensure more transparency in financial statements so investors can make informed decisions about securities investments.

1934 Act

The Securities Exchange Act of 1934, legislation regulating the secondary trading of securities (stocks, bonds, and debentures) in the United States.

Truth in Securities Act

Also known as the Securities Act of 1933, it is a U.S. law aimed at ensuring the transparency of financial statements to protect investors from fraud.

Registration Requirement

A legal stipulation that certain types of activities, businesses, or professions must be registered with a government agency before they can be lawfully conducted or practiced.