n NISM Certifications
VII NISM Series VII
Medium

Identify the TRUE statements: A. Buy limit order is set to buy at or below the market price, B. Sell limit order is set to sell at or above the market price, C. Market order executes at the lowest available price

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Only A and B are true

    Correct answer

  2. B

    Only B and C are true

  3. C

    Only A and C are true

  4. D

    All A, B and C are true

Why this is the answer

Market orders execute at the best available price, not necessarily the lowest. Limit orders set specific buy/sell prices.

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