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What is Market order?

Market order: An order to buy or sell at the current price.

Where Market order fits

Market order is part of Market Basics in Stock Market. Stocks are small ownership shares traded on an exchange. Brokers execute orders, indexes track the market, and bull or bear markets describe the mood.

Practical tip

Understand why a price moves before you act on it.

Related terms

Stock exchange
A marketplace where shares are bought and sold.
Bull market
A period when prices rise and investors feel optimistic.
Bear market
A period when prices fall and investors feel pessimistic.
Market capitalization
Share price times number of shares: a company's market value.
Ticker symbol
A short code that identifies a company's stock on an exchange.
ETF
A fund holding many assets that trades like a single stock.
Share price
The current cost of buying one share.
Broker
Someone who buys and sells securities for clients.

Formulas you will use with it

Market capitalizationEarnings yieldBook value per sharePrice-to-book

Test yourself

Which term means: “An order to buy or sell at the current price.”?

Bear market · ETF · Market order

Answer: Market order

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