CFA Level I · CFA Level I Exam · Equity Issuance and Trading
An investor places an order that must be executed immediately and in its entirety, or else be canceled. This order is best described as a:
This is a fill-or-kill order, which must execute immediately and completely or be canceled. An immediate-or-cancel order differs because it permits partial fills, and a good-till-canceled order remains open over time rather than requiring immediate execution.
- Agood-till-canceled order
- Bfill-or-kill orderCorrect
- Cimmediate-or-cancel order
Explanation
Fill-or-kill requires the whole quantity to execute immediately or the order is canceled. Immediate-or-cancel allows a partial fill, canceling only the unfilled remainder. Good-till-canceled stays active over time until filled or canceled.
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