Which of the following statements about market orders is false?

A market order is an order to buy or sell a security immediately at the current market price. This type of order prioritizes execution over price, which means that it will be fulfilled as quickly as possible at whatever the current price is at the time the order is placed.

The statement about market orders guaranteeing a price but not execution is misleading. In reality, market orders do not guarantee a specific price; they are executed at the prevailing market price, which could fluctuate slightly between the placement of the order and its execution. Therefore, the notion that market orders guarantee a price is false.

This differentiates market orders from other types of orders, such as limit orders, that can set specific price conditions for execution. Therefore, the correct assertion is that market orders execute immediately at the best obtainable market price, making the statement about them guaranteeing price false.