Describe the difference between 'market orders', 'limit orders', and 'stop orders' and when each is used.

Describe the difference between 'market orders', 'limit orders', and 'stop orders' and when each is used.

• A. Market orders specify a price and may not fill.
• B. Limit orders execute immediately at the current best price.
• C. Market orders execute immediately at the best available price; limit orders specify a price and may not fill; stop orders trigger a market order when price reaches a specified level.
• D. Stop orders guarantee a fill at the stop price.

Answer: (C)