"One way for investors to protect themselves from a rapid change in the price of a stock is to use a limit order rather than a market order"

This quote by Arthur Levitt is referring to the stock exchange as well as just how capitalists can safeguard themselves from a sudden modification in the price of a stock. A limit order is an order to buy or market a supply at a specific rate or far better. This implies that the financier can set a restriction on the maximum or minimal price they want to pay for a stock. By utilizing a limitation order, the capitalist can shield themselves from a quick modification in the price of a stock, as they will just purchase or offer the stock at the rate they have established. This can aid to reduce the danger of losses as a result of unexpected cost adjustments.