Order Splitting

DEFINITION of 'Order Splitting'

When brokers split up larger orders to qualify them for the Small Order Execution System (SOES) and, therefore, have them automatically executed.

BREAKING DOWN 'Order Splitting'

SOES is for individual traders with orders less than or equal to 1,000 shares. The practice of order splitting is prohibited on the Nasdaq.

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RELATED FAQS
  1. What happens to a stop order after a stock splits?

    A stop order, commonly referred to as a stop-loss order, is an order placed with a broker to sell a security when it reaches ... Read Answer >>
  2. How and why does a stock split?

    Learn why stock splits do not occur very often for individual stocks, and understand the impact of reverse stock splits on ... Read Answer >>
  3. Does a stock split lead to the gapping up/down of the stock?

    If a company splits its stock, there will be no gapping of the stock due to the split itself. A stock split does not materially ... Read Answer >>
  4. What's the difference between a market order and a limit order?

    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ... Read Answer >>
  5. How does a company decide when it is going to split its stock?

    Learn why some companies decide to split their shares, and understand how they think it helps the stock's liquidity and future ... Read Answer >>
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