Order Types
A limit order guarantees:
Limit order: guarantees PRICE (if filled), not execution. Market order: guarantees execution, not price.
Complete Analysis & Legal Rationale
A limit order guarantees the specified price or better IF the order is executed. However, unlike market orders, limit orders do not guarantee execution - the market may never reach the limit price.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Limit orders do not guarantee execution.
Matches the verified teaching point in the explanation.
This describes a market order.
Priority depends on time and price, not order type alone.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.