Types of orders in Securities market (2)

A limit order " on the books" is executed only when a security is price becomes more favorable. A stop-loss order operates in the opposite direction. for example, a stop-loss order at $30 per share might be placed to sell 100 shares of stock currently trading at 40$ per share. AS long as the price remains above $30, a nothing happens. But as soon as the price reaches (or drops below)$30, the order is converted to a market order, to be executed on the best possible terms. A stop-loss order to purchase shares becomes a market order when the price reaches or rises above the level indicated.
A dollar- value order is a market order to purchase as many shares as possible for a given dollar amount even though fractional holdings may result. Accounts are consolidated internally, and the brokerage firm takes positions in securities as needed. Sales of fractional shares are also allowed (of course only whole shares can be delivered to customers; fractional holdings are simply records in a computer).
The standard unit in which a stock is traded is termed a round lot (usually 100 shares). Any smaller quantity is odd lot. An investor who wishes to purchase or sell an odd lot. An investor who wishes to purchase or sell an odd lot generally does business with a dealer instead of another investor.For example, certain brokerage firms will usually purchase an odd lot of a stock listed on the New York Stock Exchange at the price currently quoted on the exchange for a purchase and sell an odd lot for the price currently quoted on the exchange for a sale . Specialists on most exchanges also handle odd lots, using similar procedures.