Olive placed an order with her stockbroker to sell 1,000 shares 'at best'. The last transaction on the shares at the time Olive placed her order was completed at €12.30 per share. The stockbroker is required to sell the shares at

• A. a price lower than €12.30.
• B. exactly €12.30.
• C. the highest price available in the market at that time.
• D. a price higher than €12.30.

Answer: (C)

When you say you want to sell something “at best,” you’re asking your broker to get you the best price currently being offered by buyers. In a market, buyers’ offers are called the bid. So the broker will execute your sale at the highest bid price available at that moment, not necessarily at the last price a trade occurred or at a price higher than all bids. The last trade price of €12.30 is just a past transaction price; market prices can move with new bids and offers.

If the current highest bid is €12.40, you’d sell at €12.40; if it’s €12.25, you’d sell at €12.25. The key idea is selling at the best price someone is willing to pay right now. Therefore, the broker is required to sell the shares at the highest price available in the market at that time.