What price does a market order to sell a stock execute at?

A market order to sell a stock executes at the current bid price. This is because a market order is designed to sell immediately at the best available price in the market, which in the case of selling is the highest price that buyers are currently willing to pay—this is known as the bid price. When an investor places a market order to sell, they relinquish control over the exact selling price in exchange for the immediacy of the sale, ensuring a quick transaction at the prevailing market conditions.

The ask price, on the other hand, is the minimum price at which sellers are willing to sell their shares, and it is not relevant to a sell market order. A set limit price would apply to a limit order but not to a market order, and the term "market value override" is not an established concept in typical stock trading terminology. Thus, the mechanics of a market order clearly tie it to the bid price, affirming why that choice is correct.