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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.