Stocks 101: Understanding Order Types
December 6, 2011 Leave a Comment
Buying a share of stock is as simple as calling your broker and saying that you want to buy a certain amount of shares of a company at a certain time.
It is a very easy process, but as you become a more experienced investor you will realize that there are multiple ways to protect your money while it is floating in the risky seas of the stock market.
When purchasing shares of stocks, there are different types of orders you can make.
The most typical one is that of a Market Order.
This is the most commonly used method because you are basically telling your broker to buy or sell a stock at the current market price. This is the method your broker will normally use unless you tell him otherwise- you are guarenteed that your order will be executed. Read more of this post
