Series 7 - General Securities Representative Exam
Consider the following scenario. A customer owns 100 shares of TUV corp stock. The stock closed at $56.44 for the day. The customer had entered a Good Til Cancel order earlier in the day, to sell 100 shares at a limit price of $56.91. The order continues working after the close. The next day TUV opens at $55.60 and goes down the rest of the day. The high of the day was $55.60. What happened to the customer's order?
The order was a sell limit order. It was a GTC order, so the order continues to be in force after the close. The stock never traded high enough the next day to fill the order; so the order continues to work in the market. It will either get filled if and when the price reaches the limit price of $56.91, or will be canceled by the customer