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
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    Learn about market orders and stop orders, how they are used and executed, and the main difference between stop orders and ... Read Answer >>
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    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 >>
  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 smallest number of shares I can buy?

    Unlike mutual funds, which can be purchased in fractional units, shares of stock cannot be divided. So, the smallest number ... Read Answer >>
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