Ch15 S2

Front 1

Market order

Back 1

Buy or sell a security at the best price available
-Orders entered at the opening always have priority over limit orders

Front 2

Limit order

Back 2

Buy or sell at a specific price or better
-Good for the day orders(DAY)
-Good till Cancelled(GTC)-

Front 3

Good for the day orders

Back 3

-Limit order
-Expires on the day it is entered unless executed
-If portion of order is executed, the remaining order will be cancelled
-If DAY order is changed to GTC, the order will lose its position in 'line'

Front 4

Good till Cancelled

Back 4

Limit order
-Order remains in effect until executed
-Renewed twice a yr in April and Oct
-Must be cancelled by member firm

Front 5

SL/BS

Back 5

entered ABOVE current MP and will not be executed unless moves UP TO OR ABOVE the price indicated in the order

Front 6

BL/SS

Back 6

entered BELOW the current MP of the stock and will not be executed unless the market moves DOWN TO OR BELOW the price indicated in the order

Front 7

Stop limit order

Back 7

Is first always a stop, then becomes a limit order

Front 8

Fill or Kill(FOK)

Back 8

Order is executed at once in its entirety or is cancelled
-Not accepted on the NYSE

Front 9

Immediate or Cancel(IOC)

Back 9

Executed in its entirety or partially and remaining balance is cancelled

Front 10

All or None(AON)

Back 10

Executed in its entirety but not immediately
-Not done on NYSE

Front 11

Alternative order

Back 11

An order to do one of two alternatives
-The execution of either of these causes cancellation of the other. If there is a partial execution of one side, both sides are adjusted

Front 12

T or F
When entering a 'Sell Long' order, the RR must determine the physical location of the securities being sold and must be sure that the customer does not have a 'net long position'

Back 12

T

Front 13

T or F
All SELL order must indicate if the inv is long or short

Back 13

T

Front 14

Order flow thru a brokerage firm

Back 14

Wire Room order- transmit orders for execution
Purchase and sale dept- record and process order executions
Margin Dept- monitor moargin accounts
Cashier Dept- where funds are received

Front 15

The cashiers dept in a brokerage firm is NOT responsible for:

Back 15

Transmittal of orders for execution

Front 16

The reorganization dept

Back 16

responsible for handling the exchange of one security to another

Front 17

Reg SHO order protection rules for trading centers requires that:

Back 17

1.Access to quotes must be immediate
2.The execution of trades take place at a price that is at or better than the national BBO