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The stock of Nutrisystem, Inc. (NTRI) is selling for $17.70 when Miss Piggy places a limit order to buy the stock at $17.65. During the period the order is open, NTRI falls to $17.60 and then increases to $17.67.
Which of the following statements is most likely to be true in this scenario?
Suggested Answer: B
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If Miss Piggy placed an order to buy the stock of Nutrisystem (NTRI) at $17.65, the statement most likely to be true is that she bought the stock for no more than $17.65. A limit order specifies the maximum price she's willing to pay, and her order would not be executed at any price higher than $17.65. It is possible, but highly unlikely, that her order would be executed for as low as $17.60 a share.
12 comments · newest first
CA
Cathrine
1 month ago
C seems off. NTRI dropped to $17.60 but she didn't buy then.
CH
Chanel
1 month ago
Agreed! She wouldn't pay more than that.
TR
Tresa
1 month ago
I think B is correct. She set a limit at $17.65.
ME
Mendy
2 months ago
Totally agree, she would have bought at $17.65 max!
MA
Mari
2 months ago
Wait, how can she buy at $17.66 if her limit is $17.65?
TO
Tora
2 months ago
I think she got it for $17.60 or less.
CY
Cyril
2 months ago
She definitely didn't buy at $17.67.
BA
Barbra
2 months ago
Miss Piggy's limit order is at $17.65.
CA
Casandra
2 months ago
I thought limit orders only execute at the limit price or better, so maybe C is misleading? I think B makes the most sense.
EM
Emeline
3 months ago
This kind of question seems familiar; I think the limit order means she wouldn't have bought it at $17.67, so A can't be right.
EL
Elbert
3 months ago
I'm not entirely sure, but I feel like if the stock never hit $17.65, she wouldn't have bought it at all.
BO
Bobbye
3 months ago
I remember that with a limit order, you can only buy at your specified price or lower, so I think B is the right choice.