Limit Order Law and Legal Definition
A limit order is an order placed with a broker to buy or sell a stated number of shares at a specified price regardless of the market price. A limit order to buy would be at the limit or lower, and a limit order to sell would be at the limit or higher. For e.g., an investor can place a limit order to sell shares of company XYZ for $150 or more, even if the stock is currently trading for $140. Similarly, an investor can place a limit order to buy shares at a lower price. A limit order can include instructions limiting the time it remains in effect.
Legal Definition list
Related Legal Terms
- Affiliation Order
- Aggregate Lifetime Limit
- Aggregate Limit [Insurance]
- Agreed Order
- Agreement on Border Environment Cooperation Commission
- Alcohol-Related Neurodevelopmental Disorders
- All-Limitations Rule
- Alternate Payee to Qualified Domestic Relations Order
- Annual Limit on Intake (ALI)
- Anti-Social Behavior Order
