SIE practice questionhardOrder Types
A client places a fill-or-kill order to buy 1,000 shares at $10. Only 900 shares are available at that price. What occurs?
- AThe order is executed over several days.
- B900 shares are bought at $10.
- C1,000 shares are bought at a higher price.
- DThe order is canceled immediately.✓ Correct answer
Explanation
Why D — The order is canceled immediately.
A fill-or-kill order must be executed in full immediately or canceled. No partial fills or time extensions are allowed. Buying fewer shares or spreading over days doesn’t meet the order’s requirements.
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