n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is a feature of a 'Market Order'?

Practice question from NISM XXI A for PMS - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It specifies the price at which to buy or sell

  2. It is executed immediately at the current market price

    Correct answer

  3. C

    It guarantees a specific price for execution

  4. D

    It is only executed during market hours

Why this is the answer

Market orders are executed promptly at the prevailing market price without specifying a limit.

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