Split Order

Split order

A large securities transaction that is divided into smaller orders that are spread out over some period of time to avoid large fluctuations in the market price.

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Split Order

An order to buy or sell a security that, because of its size, is executed as two or more smaller orders. The order is split in order to reduce the pressure for a large price fluctuation that can occur when such orders occur. The exact size of a split order varies according to security. For example, a stock with relatively few shares outstanding will likely have a smaller threshold for a split order than others. Most of the time, split orders are made by institutional investors. Split orders are common among significant orders.

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split order

A relatively large single order that is executed in two or more transactions to minimize its effect on the market price of the security being bought or sold.