Recognizing Different Types of Orders As an investor, based on your goals and investment objectives you create an investment plan. You choose your stockbroker that suits your needs, but when it is time to actually buy or sell securities in the securities market, it is important to understand how your transactions will be executed. Based on your expectations regarding a specific transaction you have the option to select from three different order types: market order, limit order, or a stop-loss order. Kate is an experienced investor who enjoys researching and investing in individual stocks that appear promising. On August 12 she is reviewing the trading information for a new home electronics company TechUp, presented in the following table. She is extremely confident in the future performance of TechUp and wants to buy 100 shares of stock regardless of the price, therefore she places a order at 1:45 PM EDT. She knows that the execution price for this type of order. the last-trade price at the time she places the order. Her broker is able to execute the trade within minutes, obtaining her 100 shares at $284.16 each. Suppose the price of the stock rises for the rest of the day, eventually closing at a price of $291.92, In this case, the total value of the shares she purchased between the time of her purchase and the end of the day, If she had instead placed a order at 1:45 PM to buy the same number of shares only if the price felt to $281.12, she would have by the end of the day instead. Hubert is another investor who currently owns shares of Techup stock. He would like to place a particular kind of limit order, in which the order remains in effect indefinitely, uniess it is filled or canceled. This type of order is known as