If menu prices shifted as much as stock prices do, eating out would be an unappetizing prospect. But you can take control of how much you want to pay for a stock share by placing a limit order with your broker.
Bankrate.com explains the concept: “’Anytime a particular stock trades at a relatively low volume, setting a limit order guarantees you don’t buy above or sell below your specified price,’” says Erika Safran, founder of Safran Wealth Advisors LLC in New York.”
The downside, of course, is that that the stock may not move to the price you want and the transaction may not go through.
Limit orders “can be applied to transactions involving exchange-traded funds or stocks, but not mutual funds since the share price of mutual funds typically changes just once per day,” George Padula, a financial planning instructor at Boston University, tells Bankrate.com.
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