False Statement about Orders: Market Buy Orders and Bid Price

Answer: b. A market buy order will purchase securities at the bid price.

Explanation:

A market buy order is an order to buy a security immediately at the best available price. This price is typically the ask price, which is the lowest price at which a seller is willing to sell the security. The bid price, on the other hand, is the highest price at which a buyer is willing to buy. Therefore, a market buy order will usually purchase securities at the ask price, not the bid price.