Here are a few basics of what this broad subject has to offer up to any individual who wants to know more about it.
 

If you are an investor who relies heavily on currency stocks, the all-or-none order (AON) is very important.  The AON order works to safeguard your investment by providing the commitment that you will collect every single stock that you requested or none at all.  This sort of order can be problematic when a particular party lacks the money to stay behind their stocks or a limit has been put on the order.  All-or-none orders are the lowest priority of your stockbroker therefore, this sort of transaction is done last, so when your dealer finally attempts to finish this order, there must be enough stocks untaken to buy or the order is null and void.  Therefore, your all-or-none order will not be satisfied while there is not enough stock there no matter how much time elapses before you obtain an AON order.

In order to better clarify this sort of order, an example is provided.  Let's say that you put in an order to buy 2500 shares of stock from Wal-Mart, however, because Wal-Mart stocks are in such high demand, only 1000 shares are untaken for purchase.  If you place an all-or-none order on the Wal-Mart shares, then you must wait until 2500 shares are untaken for purchase.  Now, if it takes 10 months for 2500 shares of stock from Wal-Mart to become available, then there is a high chance that the outlay of each stock has increased.  However, because you located an AON order 10 months ago, your dealer is presently executing the order, and the whole number of stocks are presently available, so you have to acquire all 2500 of them no matter what the outlay per stock may be.

Obviously the benefit to the all-or-none order is that the outlay of any given company's stock could moreover stay the same or even decrease in price.  For example, you would like to acquire 3000 shares of stock in Applebee's, a restaurant chain; however, because Applebee's stocks are in high demand, there are only 1000 stocks untaken for purchase.  You truly love this restaurant franchise and you had your heart set on 3000 shares of Applebee's, so you decided to place an all-or-none order on the acquirement of these stocks.  Presently each share of stock is priced at $200 each, so you would only presently be investing $600,000 if the stocks were available.  So, now you play the “waiting” game to see if other people who own stocks in Applebee's are prepared to trade them.  Finally, after 2 years of waiting, your stockbroker contacts you with the good news that all 3000 shares of Applebee's stock are available.  And, even better news, each stock has dropped $50 in price.  That means that instead of investing $600,000 for 3000 shares of Applebee's stock, you only have to invest $450,000!  If you funds allows, that leaves you with $150,000 to invest into another stock.

Now, there are two huge disadvantages of all-or-none orders, the first one being outlay inflation.  For example, you would like to obtain 4500 shares of stock from South-western Bell, a receiver company.  So, again, you phone your dealer with this decision.  You dealer informs you that there are only 2500 shares of stock available from South-western Bell, however, he tells you that it would be clever to place an all-or-none order because these stocks appear to be steadily increasing in value.  So, you follow through with this.  About 9 months later, your stockbroker reports to you that all 4500 shares of stock in South-western Bell are available; however, the outlay per stock has amplified 34%.  Because you did not cancel this all-or-none order, you are now enforced to pay for all 4500 shares of South-western Bell stock.  The other disadvantage is that you may not get the all-or-none prepared stocks.  Let's say that you want 6000 shares of stock from Friedman's, a jewels store, however, not all the stock is presently available.  So, you place an all-or-none order.  Three months later, your stockbroker goes to conclude the order; however, there are still not 6000 stocks available from Friedman's.  Because your stockbroker attempted to charge the order, you have lost all of the stocks that you sought to purchase.

Because this sort of order is awfully stressful, it is imperative that you hire a dealer in which you can thoroughly have faith in due to the detail that one dishonest move will make you lose everything!

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P. Johnson, Investment Specialist writing for http://www.thearticleblogs.com

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