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Question:

Evelyn Stram, CFA, places a good-till-cancelled limit buy order at 86 for a stock. Strain’s order specifies:

A validity and execution instructions.
Explaination

Good-till-cancelled is a validity instruction, which indicates when an order may be filled. Execution instructions include limit orders and market orders, as well as instructions regarding trade size and visibility. A clearing instruction indicates how to arrange final settlement of the trade.