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Definition of 'Execution'
The completion of a buy or sell order for a security. The execution of an order happens when it is completely filled, not when it is placed by the investor. When the investor places the trade, it goes to a broker, who then determines the best way for it to be executed.
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Investopedia explains 'Execution'
Brokers are required by law to give investors the best execution possible, and can attempt to execute the transaction in the following ways:
1. Order to the Floor: This can take some time as it goes through human hands. The floor broker will need to get the order and fill it.
2. Order to Market Maker: On exchanges such as the Nasdaq, market makers are in charge of different stocks. The investor's broker may direct the trade to one of these market makers for execution.
3. Electronic Communications Network (ECN): An extremely quick method, whereby computer systems electronically match up buy and sell orders.
4. Internalization: If the broker's firm holds an inventory of the stock in question, it may decide to execute the order from its own inventory.
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Search results for 'Execution'
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http://www.investopedia.com/articles/01/022801.asp
Understanding Order Execution. ... Also, when the broker tries for a better price (for
a limit order), the speed and the likelihood of execution also diminishes. ...
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http://www.investopedia.com/exam-guide/series-26/sales/execution-transactions.asp
In this section NASD rules on execution of portfolio transactions and other
provisions. ... Sales Activities - Execution of Portfolio Transactions. ...
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http://www.investopedia.com/university/electronictrading/trading6.asp
Electronic Trading: Small Order Execution System (SOES). Filed Under ยป
Retirement. Sponsor: At last, an easy way to predict stock ...
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http://stocks.investopedia.com/stock-analysis/2011/Brown-Shoe-Needs-More-Execution-Less-Excuses-BWS-SKX-SCVL-PSS-NKE-KSWS-SAP0830.aspx
... Brown Shoe Needs More Execution, Less Excuses. Posted ... properly. More Execution,
Fewer Excuses Why am I being so hard on Brown Shoe management? ...
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http://stocks.investopedia.com/stock-analysis/2012/Hess-Corporation-To-Focus-On-Execution-In-2012-HES-BHP-CVX-CNX0116.aspx
... Article; Comments (0). Hess Corporation To Focus On Execution
In 2012. Posted: Jan 16, 2012 13:58 PM by Eric Fox. ...
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http://www.investopedia.com/articles/trading/03/020503.asp
DATs can dramatically speed up order execution - find out
how this system gives novice traders an edge. ...
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http://www.investopedia.com/university/electronictrading/trading5.asp
... she wants to trade. This way the trader will get immediate attention, which
usually results in a faster execution. There are a few ...
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http://www.investopedia.com/ask/ViewFAQPrintable.aspx?url=%2fask%2fanswers%2f10%2fmutual-funds-advantages-disadvantages.asp
... Poor Trade Execution If you place your mutual fund trade anytime before the
cut-off time for same-day NAV, you'll receive the same closing price NAV for your ...
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http://www.investopedia.com/articles/01/101701.asp
... Traders require access to superior research information, excellent execution skills
and most likely the ability to trade in other types of securities, such as ...
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http://www.investopedia.com/university/electronictrading/trading8.asp
... We hope this has enlightened your outlook and helped you achieve a greater
understanding of how the execution of stock orders is done. ...
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