Which type of order allows buying or selling securities at the prevailing market price?

Which type of order allows buying or selling securities at the prevailing market price?

• A. Limit Order
• B. Day Order
• C. Market Order
• D. Delayed Delivery Order

Answer: (C)

A market order is a type of order that allows the buying or selling of securities at the prevailing market price. This means that when a market order is placed, it is executed immediately at the best available price in the market. The priority of a market order is speed, ensuring that the order is completed as quickly as possible, which can be crucial in fast-moving markets.

Other options such as a limit order specify a price at which an investor is willing to buy or sell, meaning the order may not execute if the market price does not reach that limit. A day order refers to an order that is valid only for the trading day it is placed, and it does not inherently imply immediate execution at market prices. A delayed delivery order involves arrangements for a future transaction rather than an immediate execution at the current market price. Thus, the market order stands out as the option that directly aligns with executing trades at the current market price.