Buy limit order

Similar financial terms

Swap buy-back
The sale of an interest rate swap by one counterparty to the other, effectively ending the swap.

Protective put buying strategy
A strategy that involves buying a put option on the underlying security that is held in a portfolio.

Management buyout (MBO)
Leveraged buyout whereby the acquiring group is led by the firm's management.

Leveraged buyout (LBO)
A transaction used for taking a public corporation private financed through the use of debt funds: bank loans and bonds. Because of the large amount of debt relative to equity in the new corporation, the bonds are typically rated below investment grade, properly referred to as high-yield bonds or junk bonds. Investors can participate in an LBO through either the purchase of the debt (i.e., purchase of the bonds or participation in the bank loan) or the purchase of equity through an LBO fund ...

Builder buydown loan
A mortgage loan on newly developed property that the builder subsidizes during the early years of the development. The builder uses cash to buy down the mortgage rate to a lower level than the prevailing market loan rate for some period of time. The typical buydown is 3% of the interest-rate amount for the first year, 2% for the second year, and 1% for the third year (also referred to as a 3-2-1 buydown).

Buy in
To cover, offset or close out a short position.

Buy on close
To buy at the end of the trading session at a price within the closing range.

Buy on margin
A transaction in which an investor borrows to buy additional shares, using the shares themselves as collateral.

Buy on opening
To buy at the beginning of a trading session at a price within the opening range.

Buy-and-hold strategy
A passive investment strategy with no active buying and selling of stocks from the time the portfolio is created until the end of the investment horizon.

Buydowns
Mortgages in which monthly payments consist of principal and interest, with portions of these payments during the early period of the loan being provided by a third party to reduce the borrower's monthly payments.

Buying the index
Purchasing the stocks in the S&P 500 in the same proportion as the index to achieve the same return.

Buyout
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is done with borrowed money.

Buy-back
Another term for a repo.

Buy-side analyst
A financial analyst employed by a non-brokerage firm, typically one of the larger money management firms that purchase securities on their own accounts.

Buyback
The covering of a short position by purchasing a long contract, usually resulting from the short sale of a commodity. Also used in the context of bonds. The purchase of corporate bonds by the issuing company at a discount in the open market. Also used in the context of corporate finance. When a firm elects to repurchase some of the shares that trade in market.

Management BuyIn (MBI)
This is when a small group of shareholders organise a take-over of a company and form a new management team. The opposite of a Management Buyout.

Exercise limit
The maximum number of option contracts that can be exercised within a five-day period.

Limit Order
An order that can be executed only at a specified price or one more favorable to the investor.

Limit Move
The maximum price move permitted by the exchange in a single trading session.

PLC (Public Limited Company)
Under UK law there must be a minimum of seven shareholders in a PLC. There is no maximum number of shareholders allowed. Shares in PLCs can be bought or sold on the Stock Market by the general public. By implication, most big companies choose this route to growth as it provides access to large amounts of capital that can be used for investment, expansion and acquisition. Although technically owned by the shareholders, its management determines the affairs of the company. The US equivalents are I ...

Unlimited liability
Full liability for the debt and other obligations of a legal entity. Generally, partners of a partnership and sole propietors have unlimited liability.

Stop-limit order
A stop order that designates a price limit. In contrast to the stop order, which becomes a market order once the stop is reached, the stop-limit order becomes a limit order once the stop is reached.

Sell limit order
Conditional trading order that indicates that a security may be sold at the designated price or higher.

Master limited partnership (MLP)
A publicly traded limited partnership.

Limited-tax general obligation bond
A general obligation bond that is limited as to revenue sources.

Limited-liability instrument
A security, such as a call option, in which the owner can only lose his initial investment.

Limited partnership
A partnership that includes one or more partners who have limited liability.

Limited partner
A partner who has limited legal liability for the obligations of the partnership.

Limited liability
Limitation of possible loss to what has already been invested.

Limitation on subsidiary borrowing
A bond covenant that restricts in some way a firm's ability to borrow at the subsidiary level.

Limitation on sale-and-leaseback
A bond covenant that restricts in some way a firm's ability to enter into sale and lease-back transactions.

Limitation on merger, consolidation, or sale
A bond covenant that restricts in some way a firm's ability to merge or consolidate with another firm.

Limitation on liens
A bond covenant that restricts in some way a firm's ability to grant liens on its assets.

Limitation on asset dispositions
A bond covenant that restricts in some way a firm's ability to sell major assets.

Limit price
Maximum price fluctuation

Limit order book
A record of unexecuted limit orders that is maintained by the specialist. These orders are treated equally with other orders in terms of priority of execution.

Cost of limited partner capital
The discount rate that equates the after-tax inflows with outflows for capital raised from limited partners.

Daily price limit
The level within many commodity, futures, and options markets are allowed to rise or fall in a day. Exchanges usually impose a daily price limit on each contract.

Debt outstanding subject to limitation
Obligations incurred by the Treasury subject to the statutory limit set by Congress. Until World War 1, a specific amount of debt was authorized for each separate security issue. Beginning with the Second Liberty Loan Act of 1917, the nature of the limitation was modified until, in 1941, it developed into an overall limit on the outstanding Federal debt. The statuatory limit may change from year to year.

Limited Company
A domestic business company with limited liabilities.

Limited Liability Company (LLC)
Consists of member owners and a manager, at a minimum. Similar to a corporation that is taxed as a partnership or as an S-corporation. More specifically, it combines the more favorable characteristics of a corporation and a partnership. The LLC structure permits the complete pass-through of tax advantages and operational flexibility found in a partnership, operating in a corporate-style structure, with limited liability as provided by the state's laws.

Limited liability partnership (LLP)
A form of the LLC favored and used for professional associations, such as accountants and attorneys.

Limited liability limited partnership (LLLP)
Intended to protect the general partners from liability. Previously, the general partner was a corporation to protect the principals from personal liability. Under the LLLP, an individual could be a general partner and have limited personal liability.

Statute of Limitations
The deadline after which a party claiming to be injured by the settlor may (should) no longer file an action to recover his or her damages.

Limit Move
A price that has advanced or declined the permissible limit during one trading session, as fixed by the rules of a contract market.

Stop Limit Order
A stop limit order is an order that goes into force as soon as there is a trade at the specified price. The order, however, can only be filled at the stop limit price or better.

Variable Price Limit
A price limit schedule, determined by an exchange, that permits variations above or below the normally allowable price movement for any one trading day.

Principal Orders
Principal orders refers to hte activity by a broker or dealer who buys or sells for his or her own account and risk.

Good till cancelled order
A good till cancelled order (GTC) is an order to a broker instructing him to buy or sell shares at a specified price which remains valid until cancelled by the client or by execution.

Day Order
A buy or sell order that will expire automatically at the end of the trading day on which it is entered.

One Cancels the Other Order (OCO)
A combination of two orders in which the execution of either one automatically cancels the other.

Stop order (or stop)
An order to buy or sell at the market when a definite price is reached, either above (on a buy) or below (on a sell) the price that prevailed when the order was given.

Stop-loss order
An order to sell a stock when the price falls to a specified level.

Pecking-order view (of capital structure)
The argument that external financing transaction costs, especially those associated with the problem of adverse selection, create a dynamic environment in which firms have a preference, or pecking-order of preferred sources of financing, when all else is equal. Internally generated funds are the most preferred, new debt is next, debt-equity hybrids are next, and new equity is the least preferred source.

Open (good-til-cancelled) order
An individual investor can place an order to buy or sell a security. That open order stays active until it is completed or the investor cancels it.

Negotiable order of withdrawal (NOW)
Demand deposits that pay interest.

Market order
This is an order to immediately buy or sell a security at the current trading price.

Cross-border risk
Refers to the volatility of returns on international investments caused by events associated with a particular country as opposed to events associated solely with a particular economic or financial agent.

Order
Instruction to a broker/dealer to buy, sell, deliver, or receive securities or commodities that commits the issuer of the "order" to the terms specified.

Fill-or-kill order (FOK)
A trading order that is canceled unless executed within a designated time period. A market or limited price order that is to be executed in its entirety as soon as it is represented in the trading crowd, and, if not so executed, is to be treated as canceled. For purposes of this definition, a stop is considered an execution.

At the opening order
In context of general equities, market order or limited price order that is to be executed at the opening (and corresponding price) of the stock or not at all, and any such order or portion thereof not so executed is to be treated as cancelled.

Day around order
A day order that supersedes (cancels and replaces) the previous order by altering its size or price limit.

Good This Week Order (GTW)
Order which is valid only for the week in which it is placed.