If you’re new to the stock market, or are thinking about testing the waters for the very first time but haven’t done so yet, one question you may want to ask is, “How long does it take for my securities order to be filled?” The answer depends on how you place your order to buy a security.
Most people place orders to buy stocks and other financial products through a broker. Brokers can either be of the top-end variety, offering you advice as well as customer service, or of the discount sort, which generally means that they’ll place the order for you, but you have to do all the researching and choosing yourself. You can also place orders to buy securities through DRIPS (Dividend Reinvestment Plans) and DIPs (Direct Investment Plans), which will be offered by individual companies to their shareholders to buy more company stock.
All of these options for purchasing securities are generally pretty quick to fill. Orders can be filled instantaneously, or they can take a few hours. You must place your orders during business hours, however, if you place your order after trading hours have ceased for the day the order will not be executed until trading resumes the following day.
You can also designate that you want your order to be placed at a specific time in advance, or if certain circumstances arise. In the latter instance you may want to instruct your broker to sell if the stock value reaches a certain floor or ceiling.
To learn more about placing orders, be sure to speak with a financial advisor. He or she will be glad to walk you through all the steps involved in placing an order for a security or other financial product.