Do Not Reduce Order(redirected from DNRS)
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Do Not Reduce Order (DNR Order)
Limit order to buy or to sell, or a stop limit order to sell that is not to be reduced by the amount of an ordinary cash dividend on the ex-dividend date. A "do not reduce order" applies only to ordinary cash dividends, and not stock dividends or rights.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Do Not Reduce Order
In a limit order following the ex-dividend date, an instruction not to reduce the limit price by the amount of the dividend. Most of the time, following the ex-dividend date, the price of the limit order is reduced because the coming dividend will belong to the current owner, rather than the buyer. One issues a do not reduce order if one believes that demand for the stock justifies the higher price.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved