SIE practice questionhardAll-or-None Orders
A customer places an all-or-none (AON) order to buy 5,000 shares of a thinly traded stock at $12 limit. Only 3,000 shares are available at $12. What happens?
- AThe order is not executed because all 5,000 shares are not available at the limit price✓ Correct answer
- BThe remaining 2,000 shares are filled at the next available price
- CThe order is automatically canceled at the end of the day
- DThe order is filled for 3,000 shares at $12
Explanation
Why A — The order is not executed because all 5,000 shares are not available at the limit price
An all-or-none (AON) order requires the entire quantity to be filled or none at all. Since only 3,000 of the 5,000 requested shares are available at $12, the order is not executed. Unlike a fill-or-kill (FOK) order which must be filled immediately or canceled, an AON order can remain open. Partial fills (A, C) are not permitted with AON orders.
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