Chapter 17: Orders and Trade Execution

Chapter summary

Chapter 17 covers order types, trade execution, and prohibited practices. Market orders guarantee execution but not price. Limit orders guarantee price but not execution. Stop orders trigger at a price but execute as market orders — no price guarantee. Reg SHO's alternative uptick rule restricts short selling after a 10% single-day decline. Know the prohibited practices: front-running, painting the tape, matched orders, and excessive markups.

Key concepts

• Trading Overview
• Secondary Market Trading-From Order Entry to Settlement
• NYSE and Other Traditional Exchanges
• Dealer-to-Dealer Markets
• Components of an Order Ticket
• Types of Transactions
• Types of Orders
• Regulation NMS (National Market System)
• Prohibited Trading Practices
• Trading Overview
• Secondary Market Trading-From Order Entry to Settlement
• NYSE and Other Traditional Exchanges

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