Question

Kate calls her broker to purchase 200 shares of IBM. The broker tells her that the price of a share is currently $90. Kate decides that she isn't willing to pay more than $88. What type of order will she put in?

Answer 1

This type of order is called limit order. Kate wants to purchase an IBM share at a specific price. Limit order does not necessarily mean that it is a market order since order may not push through.

Answer 2

Answer:

A limit order is a request put with a business to execute a purchase or move exchange at a set number of offers and at a predefined limit cost or better. It is a take-benefit arrange put with a bank or financier to purchase or move a set measure of a monetary instrument at a predetermined cost or better; in light of the fact that a limit arrange isn't a market arrange.

It may not be executed if the value set by the speculator can't be met amid the timeframe in which the request is left open. Limit arranges additionally enable a speculator to constrain the period of time a request can be remarkable before being dropped.

This sort of request is called limit order. Kate needs to buy an IBM share at a particular cost. Limit arrange does not really imply that it is a market arrange since request may not push through.