split order

Split order

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.

Split Order

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.

split order

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.