Business A to Z

Limit Order

An order to buy a stock at or below a specified price or to sell a stock at or above a specified price. For instance, you could tell a broker "Buy me 100 shares of xyz Corp at $8 or less" or to "sell 100 shares of xyz at $10 or better. " The customer specifies a price and the order can be executed only if the market reaches or betters that price.

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