Final answer:
A Market Order is an order type where the customer does not specify a price and the trade is executed at the current market price. This ensures the execution of the trade but not the price. It is distinguished from Limit Orders, Stop Orders, and Stop-Limit Orders.
Step-by-step explanation:
An order in which the customer does not specify a price but asks that it be executed at whatever price the stock is being traded at on the floor at that time is known as a Market Order. This type of order guarantees that the trade will be executed, but does not guarantee the execution price. A Market Order is in contrast to other types of orders, such as a Limit Order, which specifies the maximum or minimum price at which a customer is willing to buy or sell a stock, a Stop Order, also called a stop-loss order, which becomes a market order once a certain price level is reached, and a Stop-Limit Order, which becomes a limit order rather than a market order when the stop price is reached.
An order in which the customer does not specify price but asks that it be executed at whatever price the stock is being traded at on the floor at a time is a Market Order. In a market order, the investor is willing to accept the prevailing market price for the stock.