Danny and Jack, both equity analysts, are discussing the types of orders in equity markets.
During their discussion, Danny makes the following statements –
I: “Market orders are orders to buy or sell a security at the best price available.”
II: “A ‘buy’ limit order is placed above the current market price.”
Jack agrees with Danny and adds,
III: “Stop loss orders are orders where a trader borrows stock, sells it, and then purchases the stock later to return the stock back to the original owner.”
Which of the statements made by Danny and Jack is/are incorrect?