Title: Understanding Order Types and Trading Instructions in Stock Trading

Introduction:
The Securities and Exchange Commission's (SEC) Office of Investor Education and
Advocacy aims to provide valuable information to investors. In this Investor
Bulletin, we will explore the different types of orders that investors can use when
buying and selling stocks through a brokerage firm. While the focus is on general
descriptions of common order types and trading instructions, it's important to note
that availability may vary among brokerage firms. Investors are encouraged to
contact their brokerage firms to determine the specific order types and trading
instructions available to them.

I. Market Orders:
A market order is a simple and straightforward type of order. When placing a market
order, investors instruct their brokerage firms to execute the trade immediately at
the prevailing market price. Market orders ensure quick execution but do not
guarantee a specific price.

II. Limit Orders:

Limit orders allow investors to set a specific price at which they are willing to
buy or sell a stock. When placing a buy limit order, investors set the maximum
price they are willing to pay for a stock. Conversely, a sell limit order sets the
minimum price at which investors are willing to sell their shares. These orders
offer price control but may not be immediately executed if the specified price is
not reached.

III. Stop Orders:

Stop orders are designed to protect investors from significant losses or capture
potential gains. A buy stop order is placed above the current market price and is
triggered when the stock reaches or exceeds that price. It is commonly used to
limit losses or to initiate a trade once the stock price surpasses a particular
threshold. Conversely, a sell stop order is placed below the current market price
and is activated when the stock reaches or falls below that price. It can be used
to limit losses or trigger a sale if the stock price continues to decline.

IV. Stop-Limit Orders:

Stop-limit orders combine features of both stop orders and limit orders. With a
stop-limit order, investors set a stop price and a limit price. When the stock
price reaches the stop price, the order is triggered, and a limit order is placed
at the specified limit price. This order type offers more control over the
execution price but may not be filled if the limit price is not reached.

V. Trailing Stop Orders:

Trailing stop orders are useful for capturing gains while limiting potential
losses. When setting a trailing stop order, investors establish a percentage or
dollar amount as a trailing amount. If the stock price increases, the trailing stop
price adjusts accordingly, always maintaining the specified trailing amount below
the highest price reached. If the stock price declines by the trailing amount, the
order is triggered and converted into a market or limit order.

VI. All-or-None Orders:

All-or-none orders require that the entire order be executed in full or not at all.
This order type is useful when investors want to ensure complete fulfillment of
their trade, especially when dealing with large quantities or specific price
requirements. If the order cannot be filled entirely, it will not be executed.

VII. Immediate or Cancel Orders:

Immediate or cancel (IOC) orders require immediate execution of any portion of the
order that can be filled immediately. Any unfilled portion of the order is
automatically canceled. IOC orders are particularly useful when investors
prioritize immediate execution and are willing to accept partial fills.

VIII. Fill or Kill Orders:

Fill or kill (FOK) orders mandate the immediate execution of the entire order in
its entirety. If the order cannot be filled immediately and completely, it is
canceled. FOK orders are often used for larger trades or when investors require
full execution.

IX. Good 'Til Canceled Orders:

Good 'Til Canceled (GTC) orders remain active until they are executed or canceled
by the investor. Unlike day orders, which expire at the end of the trading day, GTC
orders can remain in effect for an extended period, such as weeks, months, or even
years.

Conclusion:
Understanding the various types of orders and trading instructions is essential for
investors seeking to navigate the stock market efficiently. While this document
provides a general overview, it's crucial to note that brokerage firms may have
different offerings and policies regarding order types. Investors are advised to
contact their brokerage firms directly to explore the specific order types and
trading instructions available to them. By utilizing the appropriate order types,
investors can enhance their trading strategies and make informed decisions to
achieve their investment goals.