Jorge placed a limit order to sell 2,000 shares of RokStar stock with

QUESTION

Jorge placed a limit order to sell 2,000 shares of RokStar stock with a threshold price of $18.50. At what price does his broker execute the order?

A) $18.25
B) $18.40
C) $18.49
D) $18.50
E) $18.60

ANSWER

Answer: E
Explanation: E) In a limit order for a sale, the broker is directed to sell the shares only when the market price is above the price stated in the order. Investors want to sell at higher prices to maximize their profits.