Jim Cramer on Market Order Versus Limit Order
Need some investing advice?
"It's no coincidence that the market rolled over just as DoorDash (DASH) - Get Report debuted at $182 a share, almost double their expected price of $100 a share. Cramer explained that fund managers must always sell some of their other holdings in order to make room for new IPOs and today was no different," wrote TheStreet's Scott Rutt in his Mad Money recap.
"The market's weakness was made worse by younger investors using market orders to get a piece of DoorDash. Cramer explained that market orders will buy shares at any price, which is why he always urges investors to use limit orders instead," Rutt continued.
Editor's Note: this video was first published on December 10, 2020.
Watch TheStreet’s Most Popular Videos From 2020:
- Coronavirus: The Latest Numbers on the COVID-19 Pandemic
- Tesla Stock: Jim Cramer Explains What Wall Street Still Can't Understand
- Jim Cramer Talks Stimulus Checks, Markets, and His Top Stock Picks
- How Markets Navigated 2020 'Storm:' Winners and Losers
- 5 Coolest Auto Reveals of 2020
- How to Know When a Stock Bottoms Out on Bad News
- Airbnb Lifts IPO Pricing to $60, Looking to Raise $3 Billion
- Jim Cramer Eyeing Similarities to Dot-Com Bubble but Still Buying Opportunities
- Look Out for These Changes to Social Security and Medicare in 2020
- Jim Cramer on Stock Valuations, Danger of Market Orders on IPOs