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.

---

Definitions:

Expense

Money spent or cost incurred in an entity's efforts to generate revenue, representing the cost of doing business.

Trial Balance

An accounting report that lists the balances of all general ledger accounts at a particular point in time to check the accuracy of bookkeeping entries.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit over a specific period.

Retained Earnings

The portion of a company’s profits that is retained within the business rather than distributed to shareholders as dividends.