Stock order types

Question 1

Market order

Answer 1

to buy at the available price in the market

Question 2

Market protection

Answer 2

with a established a limit price.

Question 3

Limit order:

Answer 3

To buy at a specific price.
Order must contain: total shares, share price and for how long will be active before being cancelled.

Question 4

Best limit:

Answer 4

slightly higher than the market price, but with a limit price

Question 5

Average price

Answer 5

• Close order: order will be executed the next day at the closing price.
• Day average order: order will be executed the next day at the average price of the trading day.
• Stop order: its an order to sell a position to limit a potential loss in a trade; or to cash in gains.

Question 6

BMV trading sessions

Answer 6

• 7:50 to 7:59 – cancellation of initial orders.
• 8:00 to 15:00 ongoing trade
  -Debt securities and CKDs trading ends at 14:00
• 15:01 to 15:05 order registration at the closing price.

Question 7

BIVA trading sessions:

Answer 7

• 7:50 to 7:59 – cancellation of initial orders.
• 8:00 to 15:00 ongoing trade
  -Debt securities and CKDs trading ends at 14:00
  -15:00 to 15:00 order registration at the closing price.

Question 8

Ordinary shares

Answer 8

• Right to vote
• Variable dividends
• Las to be paid in case of bankruptcy
• Higher gains with the growth of the company
• Cannot be repurchased by the company (callable)

Question 9

Preferred shares:

Answer 9

• Priority of dividens:
  -Fixed dividends
  -Paid before ordinary shareholders
• Priority in case of bankruptcy
• Callable: can be repurchased by the company
  -Usually, no right to vote.