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
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    A stop order (or stop-loss order) is executed when a security reaches a pre-determined price as a market order. Learn what ... Read Answer >>
  2. 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 >>
  3. Does a stock split make a better investment?

    Learn why a stock split doesn't make a difference to an investor's equity and the main reason why companies choose to split ... Read Answer >>
  4. I own options on a stock, and it's just announced a split. What happens to my options?

    When a stock splits, the options contract undergoes an adjustment called "being made whole, when an underlying stock splits. Read Answer >>
  5. After a Stock Split, What Happens to Certificates?

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