Final answer:
An order to sell 300 shares at the best available price is called a Market order, which aims for the quickest execution without guaranteeing a price.
Step-by-step explanation:
An order to sell 300 shares of ABC stock at the best available price when it is placed is called a Market order. The correct answer is A) Market order. An order to sell 300 shares of ABC stock at the best available price when it is placed is called a market order.
A market order ensures that the shares will be sold as quickly as possible at the prevailing market price. Market orders are used when the priority is to execute the trade immediately without specifying a specific price.
A Market order is an instruction to a broker to buy or sell a security immediately at the best available current price. It does not guarantee the execution price but ensures that the order will be executed quickly. On the other hand, a Limit order specifies a certain price to buy or sell, and a Stop order turns into a market order once a specific price level is breached.
A Stop-limit order is a combination of a stop order and a limit order where once the stop price is reached, the order becomes a limit order to execute at a specific price or better.