Which of the Following Is Incorrect with Respect to Limit

question 96

Multiple Choice

Which of the following is incorrect with respect to limit orders?

• A) They can be used only to buy stock.
• B) If the current quote does not meet the price cited in the limit order, the trade is not executed.
• C) The advantage of the limit order is that the investor makes the trade at the desired price.
• D) The disadvantage of the limit order is that the trade might not be executed at all.

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Definitions:

Shaping

A process in operant conditioning involving the reinforcement of successive approximations of a desired behavior to teach a new behavior.

Learning Strategy

A planned approach or set of tactics used to facilitate the process of acquiring knowledge or skills.

Increasingly Longer

Describing something that is gradually extending or growing in duration over time.

Partial Reinforcement

In behavioral psychology, this refers to a conditioning schedule where only some of the responses are followed by a reward, making a behavior more resistant to extinction.