Burgers! Fries! Imagine you’re the captain of a vessel...a pirate, maybe...and you call out to your crew, “Aye aye men, off to the Fountain of Money via the Indian Ocean!” That’s kind of what a directed order is, except you’re ordering the route of a securities trade to your broker or dealer (and you’re not a pirate anymore...sorry).
A directed order is “directed” since the investor is directing their order routing to a certain place, like to a certain stock exchange where the prices on that stock are a tad bit better (for now), for instance. It's for long-term and average Joe investors, where an order executed isn’t that big of a deal, so you’ll only find active traders directing the flow of their orders.
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Finance: What are Limit Order, Sell Limi...7 Views
Finance a la shmoop what is a limit order? you want to sell a thousand shares
of Colonel electric it was demoted after they cut their dividend the shares have [Scissors cuts dividend in half]
been trading wildly between $15 and $25 a share you don't want to feel like a
moron for having sold them at fifteen bucks when six weeks later they kissed
25 with tongue so what do you do well you put in a limit order that is you put
a limit of a minimum price of 25 bucks a share for Colonel Electric such that [Pile of stocks appear]
those shares will simply sit in your account unsold maybe forever until
somebody out in the wild blue yonder of Stockland is willing to pay twenty five [Woman standing at a colonel electric stand]
dollars or more for the shares where you have a minimum price limit of 25 bucks a
share in your order so here's to hoping they sell and don't get further demoted [Man carries stock into car]
Sargent Electric is just a place you don't want to go
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