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Meaning / Definition of

Fill Or Kill Order (FOK)

Categories: Finance,

Has various definitions. 1) On some exchanges, 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. In this context, no partial fills are accepted, and the FOK order is treated as an IOC, Aon order. 2) On other exchanges, a market or limit order that is to be executed by filling the number of shares made available by the first bid or offer, and then canceling any unfilled balance. In this context, a FOK order is treated as an instruction to fill what can be filled by hitting the first bid or offer, and cancel the rest. In this case partial fills are possible, and the FOK order is treated as an IOC, Any Part order. Because of the prevalence of interlisted stocks, the ability of a broker’s trading desk to direct trades to one exchange or another, and the different interpretations the order can have depending on which exchange the order is routed to, use of this type or order is discouraged. Instead, either an IOC AON, or an IOC Any Part, order will get the desired result regardless of the exchange.

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Definition / Meaning of

No-load Mutual Fund

Categories: Finance,

You buy a no-load mutual fund directly from the investment company that sponsors the fund. You pay no sales charge, or load, on the fund when you buy or sell shares.Although, no-load funds may charge a redemption fee if you sell before a certain time has elapsed in order to limit short-term turnover. Some fund companies charge an annual fee, called a 12b-1 fee, to offset their marketing costs. Your share of this fee is a percentage of the value of your holdings in the fund.You may also be able to buy no-load funds through a mutual fund network, sometimes known as a mutual fund supermarket, typically sponsored by a discount brokerage firm. If you have an account with the firm, you can choose among no-load funds sponsored by a number of different investment companies.load funds and no-load funds making similar investments tend to produce almost equivalent total returns over the long term - say ten years or more. But it can take an investor nearly that long to offset the higher cost of buying load funds.

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