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Suppose an investor needs to buy or sell a stock instantaneously and he wants to take...

Suppose an investor needs to buy or sell a stock instantaneously and he wants to take advantage of momentum and capitalize on expected changes in price of that particular stock. What sort of order should he place under such scenario? Explain your answer.

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Answer #1

MARKET ORDER is a type of order in which order is executed instantaneously at market prices which are best available for the investor because there will be execution of these orders at the the prevailing market prices at best bidding or best asking price.

When the order will be placed the same time, the order will be executed at the current market price and there will be no probability of getting executed at any specific price because it is not a limit order.

Correct answer will be MARKET ORDER .

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