Practice Quiz

FINRA Series 6

Category - Series 6

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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?
  1. Miss Piggy bought NTRI at $17.67 a share.
  2. Miss Piggy bought the stock for no more than $17.65 a share.
  3. Miss Piggy bought the stock for no more than $17.60 a share.
  4. Miss Piggy bought the stock for $17.66 a share.
Explanation
Answer: B - 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.
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