Limit Orders

A limit order is an order to buy or sell a stock at a specific price or better. �A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. �A limit order is not guaranteed to execute. �A limit order can only be filled if the stock�s market price reaches the limit price. �While limit orders do not guarantee execution, they help ensure that an investor does not pay more than a pre-determined price for a stock.

To understand where and how an order you place with your broker is executed, you should read Trade Execution: What Every Investor Should Know. For more information on the different types of orders you can place when you buy or sell a stock, please read our investor bulletin �Trading Basics�. 

http://www.sec.gov/answers/limit.htm