Execution

The completion of a buy or sell order for a security. The execution of an order happens when it is completely filled, not when it is placed by the investor. When the investor places the trade, it goes to a broker, who then determines the best way for it to be executed.

Brokers are required by law to give investors the best execution possible, and can attempt to execute the transaction in the following ways:

1. Order to the Floor: This can take some time as it goes through human hands. The floor broker will need to get the order and fill it.
2. Order to Market Maker: On exchanges such as the Nasdaq, market makers are in charge of different stocks. The investor's broker may direct the trade to one of these market makers for execution.
3. Electronic Communications Network (ECN): An extremely quick method, whereby computer systems electronically match up buy and sell orders.
4. Internalization: If the broker's firm holds an inventory of the stock in question, it may decide to execute the order from its own inventory.


Investment dictionary. . 2012.

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  • exécution — [ ɛgzekysjɔ̃ ] n. f. • 1265; lat. exsecutio, de exsequi, de ex et sequi « suivre, poursuivre » I ♦ 1 ♦ Action d exécuter (qqch.), de passer à l acte, à l accomplissement. ⇒ réalisation. Exécution d un projet, d une décision. « l esprit ne doit… …   Encyclopédie Universelle

  • EXECUTION — (Civil), laws concerning methods of recovering a debt. Definition and Substance of the Concept In Jewish law, a debt or obligation (ḥiyyuv) creates in favor of the creditor not only a personal right of action against the debtor, but also a right… …   Encyclopedia of Judaism

  • execution — ex·e·cu·tion /ˌek si kyü shən/ n 1: the act or process of executing witnessed the execution of the will 2: a putting to death as fulfillment of a judicial death sentence 3: the process of enforcing a judgment (as against a debtor); also: a… …   Law dictionary

  • Execution — Ex e*cu tion, n. [F. ex[ e]cution, L. executio, exsecutio.] 1. The act of executing; a carrying into effect or to completion; performance; achievement; consummation; as, the execution of a plan, a work, etc. [1913 Webster] The excellence of the… …   The Collaborative International Dictionary of English

  • execution — Execution. s. f. v. Il a tous les sens de son verbe. L execution d une entreprise, d un dessein. il n est pas bon pour le conseil, mais pour l execution. cela demande une prompte execution. il a souffert l execution plustost que de payer. il a… …   Dictionnaire de l'Académie française

  • Execution — Exécution Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom …   Wikipédia en Français

  • execution — mid 14c., from Anglo Fr. execucioun (late 13c.), O.Fr. execucion a carrying out (of an order, etc.), from L. executionem (nom. executio) an accomplishing, noun of action from pp. stem of exequi/exsequi to follow out, from ex out (see EX (Cf. ex… …   Etymology dictionary

  • execution — The act of getting an officer of the court to take possession of the property of a losing party in a lawsuit, the judgment debtor, on behalf of the winner, the judgment creditor, so that it may be sold and the proceeds may be used to pay the… …   Glossary of Bankruptcy

  • execution — [n1] killing beheading, capital punishment, contract killing*, crucifixion, decapitation, electrocution, gassing, guillotining, hanging, hit, impalement, lethal injection, necktie party*, punishment, rub out*, shooting, strangling, strangulation; …   New thesaurus

  • execution — [ek΄si kyo͞o′shən] n. [ME execucion < Anglo Fr < OFr execution < L executio, exsecutio: see EXECUTOR] 1. the act of executing; specif., a) a carrying out, doing, producing, etc. b) a putting to death as in accordance with a legally… …   English World dictionary

  • Execution — (lat. Executĭo, Hülfsvollstreckung), 1) die Anwendung der gesetzlichen Zwangsmittel zur Vollstreckung eines richterlichen Erkenntnisses wider den Verurtheilten. Zur Anwendung der Executionsmaßregeln wird a) im Civilprocesse vorausgesetzt, daß das …   Pierer's Universal-Lexikon


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