SIE Exam Question 147: Answer and Explanation

Question: 147

What is an order that enables the broker to have discretion regarding the timing of its execution and price called?

• A. Fill-or-kill order
• B. All-or-none order
• C. Market-on-open order
• D. Not-held order

Correct Answer: D

Explanation:

A not-held order gives discretion to the broker as to timing and price for the order's execution. A fill-or-kill order must be executed immediately upon receipt, or it must be cancelled. An all-or-none order indicates that the investor would like all of the securities bought or sold in the transaction or none at all. A market-on-open order indicates the investor's wish to have it executed right at the opening of the market or as close to it as possible.