OrderCharacteristics
•Ordersizes
•Timeperiodforwhich
theorderwillremain
outstanding
•Ordertypes
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Understanding Stock Market Orders: Sizes, Time Periods, and Types on Docsity.com, Slides of Management Fundamentals
This document on docsity.com provides an overview of various order characteristics in the stock market, including order sizes, time periods, and types. It covers round lots, odd lots, day orders, open orders, fill or kill orders, market orders, limit orders, stop orders, short selling, and dealing with brokers. It also introduces the concept of an asset management account.
Typology: Slides
2012/2013
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Order
Characteristics
Order sizes - Time period for which the order will remain outstanding - Order types
Order
Sizes
Round lots
orders of
shares
Odd lots
orders of
to
shares
Discretionary account: Broker authorized to make trades for you. Exercise caution, or avoid.
Order
Types
Market orders
an order to sell or buy a specific number of shares at the best available price.
Limit orders
an order to sell or buy a specific number of shares at a certain price or better.
Order
Types
(cont’d)
Stop (or stop
loss) orders
an order to sell a specific number of shares if the stock falls below a certain price or buy a specific number of shares if the stock rises above a certain price.
Use care to set prices to safeguard against major fluctuations.
Short
Selling
Sell
High
and
Buy
Low
(cont’d)
Must meet margin requirement.
Because you sold the broker’s stock, you must repurchase the stock and you also must repay any dividends to the original owner.
Dealing
with
Brokers
Brokerage accounts - Types of brokers; choosing one - Cash versus margin accounts - Registration: street name or your name - Joint accounts - Brokers and individual investors - The cost of trading - On ‐ line trading