What is a stock market order?

A stock market order is a document by which you authorise your financial intermediary to buy or sell shares on your behalf.

Who should one contact to place an order?

To place a stock market order, an investor must already hold an account with a bank or brokerage firm. It is the responsibility of the financial intermediary to execute the order as well as managing the account, including collecting dividends and sending out Advices of Deals specifying details of an order’s execution.

What information is contained in a stock market order?

For a stock market order to be valid, it must include the information below :   First name and surname or company name if it is for a company ;   Account number ;   Date ;   Security concerned ;   Buy or Sell ;   Number of shares to be bought or sold ;   Execution price;   Period of time for which the order is valid. An order may be placed in writing (by fax or signed order) or by phone (followed by written confirmation).

At what price should the order be placed?

The price is probably the most essential consideration when placing a stock market order. There are three types of orders – at market price, at a at limited price and at market.  PLACE YOUR ORDER AT MARKET PRICE You can opt for this formula when you definitely want your order to be executed and fixed at the best price upon its arrival. Thus.     - If you are a buyer, the price at which you are willing to buy will be equal to the best sale offer presented at market; - If you are a seller, the price at which you wish to sell will be equal to the price of the best purchase offer available in the market.  PLACE YOUR ORDER AT A LIMITED PRICE This formula allows you to master your purchase and sale price. In the situation of a buyer, the price will be equal to the maximal price at which you are willing to buy. In the situation of a seller, the price will be equal to the maximal price at which you are willing to sell. The order at a limited price is executed totally or partially executed only if the market allows     PLACE YOUR ORDER AT MARKET You may choose this formula if you definitely want your order to have priority over all other orders. The Order at Market hs no price indication. Your order is to be will be executed at different prices according to market conditions. Your order will be executed at different prices. Thus.     - For purchase, the order will be executed at the best sale offers until the designated quantity is exhausted;     - For the sale, your order will be executed at the best purchase offers, until the order is filled.

For how long is the order valid?

A stock market order may be valid over the following periods : Day-only : The order expires at the end of the stock market session if it is not executed on the same day. For a limited period : It may be valid for a period of time ranging between 2 and 30 calendar days. Good until cancelled : The order expires at the end of the calendar month.

What happens to a stock market order ?

An order is subject to the following stages :   A buy or sell order is placed with a financial intermediary. If the latter is a bank, the order is automatically transferred to a brokerage firm ;  The order is sent to the stock market by the brokerage firm’s dealing agent. When the order is executed, an Advice of Deal is sent to the client. If the order is a buy order, the client’s securities account is credited and cash account debited on D+3 (D being the transaction Day) date). If the order is a sell order, the client’s securities account is debited and cash account credited on D+3.