Which of the following is true for limit orders? a. They face adverse selection risk from noise traders b. They face adverse selection risk from informed traders c. They reduce market liquidity d. All of the above e. None of the above

Which of the following is true for limit orders? a. They face adverse selection risk from noise traders b. They face adverse selection risk from informed traders c. They reduce market liquidity d. All of the above e. None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Which of the following is true for limit orders?

	a.	They face adverse selection risk from noise traders
	b.	They face adverse selection risk from informed traders
	c.	They reduce market liquidity
	d.	All of the above
	e.	None of the above

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