Final answer:
A buy limit order specifies the lowest price to pay for a security. This strategy allows investors to seek advantageous entry points and potentially secure a better deal than the current market price. Hence, option (c) is correct.
Step-by-step explanation:
A buy limit order specifies the lowest price to pay for a security.
A buy limit order is an instruction to buy a security at or below a specified price. This means that the buyer is willing to pay up to a certain maximum price for the security, but not more. The order is executed only if the market price falls to or below the specified limit price.
For example, if a stock is currently trading at $50, an investor might place a buy limit order at $45. If the stock's price drops to $45 or below, the order will be triggered, and the investor will buy the stock at the specified limit price. However, if the market price remains above $45, the order will not be executed. Buy limit orders provide investors with control over the purchase price, enabling them to make more strategic investment decisions.