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.

Susan 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 security system company SecureYou, presented in the following table.

Stock Information for SecureYou

Trade Time: $2$:$32$ PM EDT Last Trade: $271\mathrm{.}96$

Open: $265\mathrm{.}45$ Prev Close: $264\mathrm{.}00$

Day$$s Range: $261\mathrm{.}46275\mathrm{.}53$ Change: $+7\mathrm{.}96(0\mathrm{.}03)$

She would like to buy $100$ shares of stock at some point during the day if the price falls to $$268\mathrm{.}58,$ therefore she places amarket order at $2$:$32$ PM EDT. When she places a day order, if the price does not reach $$268\mathrm{.}58$ by the end of the day, her order will becanceled $.$ Her broker is able to execute the trade two hours later, obtaining her $100$ shares at $$268\mathrm{.}58$ each.

Suppose the price of the stock falls for the rest of the day, eventually closing at a price of $$267\mathrm{.}46.$ In this case, the total value of the shares she purchased between the time of her purchase and the end of the day. If she had instead placed alimit order at $2$:$32$ PM and obtained the same number of shares at $$272\mathrm{.}16$ per share, she would have by the end of the day instead.

Raphael is another investor who currently owns shares of SecureYou stock. He would like to place a particular kind of limit order, in which the order is canceled if it cannot be executed immediately at the specified price or better. This type of order is known as $.$