12. The following quotation is taken from Wayne H. Wagner:

When a trader decides how to bring an order to the market, he or she must deal with some very important issues; to me, the most important is: What kind of trade is this? It could be either an active or a passive trade. The type of trade will dictate whether speed of execution is more or less important than cost of execution. In other words, do I want immediate trading (a market order); or am I willing to forgo the immediate trade for the possibility of trading less expensively if I am willing to “give” on the timing of the trade (a limit order)?18

a. What is meant by a “market order”?

b. Why would a market order be placed when an investor wants immediate trading?

c. What is meant by a “limit order”?

d. What are the risks associated with a limit order?