post, floor brokers know where to look for counterparties to take the other side of a trade.   Limit Orders Investors may also place limit orders, whereby they specify prices at which they are willing to buy or sell a security. If the stock falls below the limit on a limit- buy order then the trade is to be executed. If Exxon is selling at $68 bid, $68.15 asked, for example, a limit-buy order may instruct the broker to buy the stock if and when the share price falls below $65. Correspondingly, a limit-sell order instructs the broker to sell as soon as the stock price goes above the specified limit. What happens if a limit order is placed between the quoted bid and ask prices? For ex- ample, suppose you have instructed your broker to buy Exxon at a price of $68.10 or bet- ter. The order may not be executed immediately, since the quoted asked price for the shares is $68.15, which is more than you are willing to pay. However, your willingness to buy at I. Introduction 3. How Securities Are Traded The McGraw−Hill Companies, 2001           CHAPTER 3 How Securities Are Traded 77     Figure 3.4 Limit orders.               Buy       Sell   Condition Price below the limit     Limit-buy order     Stop-loss order