Question
Ryan places a good-'til-canceled limit order to sell 300 shares of KM at $18 a share. When his order reaches the trading floor, KM is
Ryan places a good-'til-canceled limit order to sell 300 shares of KM at $18 a share. When his order reaches the trading floor, KM is trading at $18.20. Which of the following statements is true concerning Roy's order?
A. | The trade will not be executed and will be immediately cancelled. | |
B. | The specialist will record the order in the order book and execute the trade as soon as the price hits $18.00. | |
C. | The brokerage firm will sell the 300 shares at $18.20 and keep the additional $0.20 as a commission. | |
D. | The order will be executed at $18.20 with the proceeds credited to Roy's account |
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