Buy The Book

DEFINITION of 'Buy The Book'

An order to purchase all shares available in the market for a particular stock at the current selling price. A buy the book order is most likely to be made by an institutional investor, and is generally to be executed at the current market price. Shares can be purchased from any party interested in selling.

BREAKING DOWN 'Buy The Book'

"Book" refers to the record of positions kept by a broker or specialist before the advent of computers. It was a record of all shares owned, so buying the book meant that an investor was taking all the broker's shares off his hands. This type of trade can end up being a very large trade in high volume stocks and may increase the price other investors are willing to sell at.

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RELATED FAQS
  1. How do I place an order to buy or sell shares?

    Read a brief overview of how to open a brokerage account, how to buy and sell stock, and the different kinds of trade orders ... Read Answer >>
  2. Why do limit orders cost more than market orders?

    Learn the difference between a market order and a limit order, and why a trader placing a limit order pays higher fees than ... Read Answer >>
  3. Does a broker always have to buy a stock if I want to sell it?

    There are certain times when a broker must purchase the stock that you are selling. For example, if the broker is a market ... Read Answer >>
  4. What's the difference between book and market value?

    Book value is the price paid for a particular asset. This price never changes so long as you own the asset. On the other ... Read Answer >>
  5. What is the smallest amount of shares I can buy?

    Understand the steps needed for an investor to open a brokerage account and make a trade. Learn what the smallest amount ... Read Answer >>
  6. What is the cost of a share purchase?

    Find out how the total price of a share purchase is dictated by the current stock price and the fees the brokerage company ... Read Answer >>
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