In terms of order adjustments, which type must be made on the ex-dividend date?

On the ex-dividend date, adjustments to limit orders are necessary because this is the date on which a stock's price is adjusted to reflect the payment of a dividend. When a stock goes ex-dividend, its price typically drops by the amount of the dividend. Limit orders, which are set to execute at a specific price or better, need to be revised to ensure that they reflect this new price level.

Investors who have limit orders in place might find that their orders are no longer relevant or appropriately set after the stock's price adjustment. Therefore, it is crucial for these limit orders to be adjusted to align with the new market conditions resulting from the dividend payout.

Market orders, buy-stop orders, and sell-stop orders operate differently and do not require adjustments on the ex-dividend date in the same way. Market orders will execute at the current market price regardless of dividend adjustments, and buy-stop and sell-stop orders are used to trigger purchases or sales at set price levels but do not need to be adjusted just because of an upcoming dividend payment.