Limit Orders Are Always Preferable to Market Orders

question 14

True/False

Limit orders are always preferable to market orders.

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Definitions:

FOB Jim's Farm

A shipping term that stands for "Free On Board," indicating that the seller delivers the goods on board a vessel chosen by the buyer at the specified location, in this case, Jim's Farm.

Risk of Loss

a legal term referring to the concern about who bears the financial burden if goods are damaged or lost during a transaction, typically addressed in sales contracts.

Shipment States

Terms related to the sale of goods that determine when and under what conditions the risk of loss passes from the seller to the buyer during transit.

Consequential Damages

Losses incurred as an indirect result of an event, beyond the immediate physical damage or loss.