An order to buy or sell a stock at the best available current price is called what?

• A. Market Order
• B. Limit Order
• C. Stop Order
• D. Short Selling

Answer: (A)

When you want to trade right away at whatever price is currently available, you use a market order. It instructs the broker to buy or sell immediately, prioritizing execution speed over price. The fill happens at the best available price in the market at that moment, which can be slightly different from the last quoted price, especially in fast-moving or less liquid markets.

Limit orders, by contrast, set a price you’re willing to trade at, so they may not fill if the market doesn’t reach that price. Stop orders trigger a trade only when the price hits a specified level and can then become a market order, which means you’re deferring price control. Short selling is a trading strategy involving selling borrowed shares to profit from a decline, not an order type.