With a market order, the broker has total decision-making authority ov

QUESTION

With a market order, the broker has total decision-making authority over when to buy or sell a security for a client.

Indicate whether the statement is true or false.

ANSWER

Answer: FALSE
Explanation: In a market order, the broker is told to buy or sell a security at the best available price. These transactions are usually carried out within minutes. If a broker had complete discretion for deciding when to buy or sell, he or she may wait much longer to execute an order to maximize benefits for the client.