Cancellation

Filed Under »
Dictionary Says

Definition of 'Cancellation'

Notice by a broker informing his or her client that an erroneous trade was made and that the situation is being addressed. For example, if a broker purchased 3,000 shares in the Acme Widget Company and the order was supposed to be for 2,000 shares, the broker will need to sell the additional shares at his or her expense. Thereafter, the broker will need to inform his or her client of the transaction.
Investopedia Says

Investopedia explains 'Cancellation'

Even in this era of electronic trading, mistakes get made. And when they do, it is important for the broker that made the mistake to quickly rectify the situation. Naturally, everything is recorded and statements are sent, showing the cancellation to ensure that the broker in question is not improperly handling the account.

Articles Of Interest

  1.

    Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.

  2. 7 Common Investor Mistakes

    Find out how to avoid - or fix - these frequent investing errors.

  3. Choosing A Compatible Broker

    We go over the factors that determine different investing personalities, and the services that best suit them.

  4. Don't Let Brokerage Fees Undermine Your Returns

    Smart investors don't give away more money than necessary in commissions and fees. Find out how to save.

  5. Does Your Investment Manager Measure Up?

    These key stats will reveal whether your advisor is a league leader or a benchwarmer.

  6. Four Big Investor Errors

    These simple lessons can cut your losses.

  7. 10 Tips For Choosing An Online Broker

    Investing online is cheaper, safer and easier than ever before. Find out how to choose the broker that will help you get the most for your money.

  8. Role Of A Market Maker

    A market maker is a firm or an individual that stands ready to buy and sell a particular security throughout the trading session to maintain liquidity and a fair and orderly market in that security. ...

  9. Decline Of The Independent Broker-Dealer

    Since the financial crisis of 2008-2009 the numbers of independent broker-dealers have been steadily declining. Find out why, and if the trend will continue.

  10. What happens if I cannot pay a margin call?

    Minimum margin is the amount of funds that must be deposited with a broker by a margin account customer. With a margin account, you are able to borrow money from your broker to purchase stocks ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  2. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  3. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  4. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  5. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...

  6. Bailment

    The contractual transfer of possession of assets or property for a specific objective.
Trading Center