Chapter 04 · Section 4.1

Price Expectations

Is the following statement true?:

"An investor can be guaranteed that a market order will be executed at the price close to what he expected."

a) No.
Yes. In most cases,the execution price will be close to what the investor expected. However, in a volatile market or a relatively non-liquid one, the execution price can be substantially different from what the investor expected when he gave the market order. Continue
b) Yes