Which of the following is a characteristic of a limit order?

A limit order is an instruction given by an investor to purchase or sell a security at a specific price or better. The defining feature of a limit order is that it includes a designated maximum price for buying or a minimum price for selling. This means that when placing a limit order to buy, the investor will not pay more than the specified price, and when placing a limit order to sell, the investor will not sell for less than that price. This characteristic helps investors maintain control over their trading prices, aligning their trades with their financial strategies and risk management preferences.

The other features mentioned in the other choices do not accurately reflect the nature of limit orders. While a limit order may take time to be filled, depending on market conditions and price movements, it is primarily the price specificity that defines its purpose and functionality. Limit orders do not halt trading; they simply wait for the market to move to the specified price before they can be executed.